Personal Income Tax – PIT Rates in Rwanda

Personal Income Tax – PIT rates in Rwanda are as explained below

Personal Income Tax is levied on income received by an individual.

Obligations of the concerned tax payers of income tax

A resident taxpayer is liable to income tax per the tax period from all domestic source and foreign source.
A nonresident taxpayer is only liable to income tax which has a source in Rwanda.

Taxable income

1° Employment income;
2° Business profits;
3° Investment income.

Tax Rate
Taxable income is rounded to the nearest thousand (1,000) Rwandan francs and taxed according to the following table:

Intermediate business owners shall pay a lump sum tax of 4% on annual turnover.

Tax declaration

An individual who receives taxable income prepares an annual tax declaration in accordance with procedures specified by the Commissioner General and he or she presents the declaration to the Tax Administration not later than 31stMarch of the following tax period.

A taxpayer who is exempted from an annual tax declaration mentioned in paragraph one of this Article is one who only receives:
1° income that is subject to withholding tax as provided for by article 48 of this law;

2° income on investment related that is subject to withholding tax as mentioned in article 51 of this law.

PAYE: is composed of
Wages, salaries, leave pay, sick pay, medical allowances, pension payment etc,
All kinds of allowances including any cost of living, subsistence, rent, and entertainment or travel allowances.

Tax Rates

Tax Declaration

DEADLINE: An employer that is subject to withholding tax in accordance with paragraph one of this Article must, within fifteen (15) days following the end of each month. For the taxpayers whose annual turnover is equal or less than 200.000.000 RWF, PAYE shall be quarterly and deposited with payment of the tax due within 15 days after the end of the quarter to which the Pay As You Earn is referred.