Rwanda Tax Guide for Foreign Investors: 10 Questions Answered
Rwanda taxes resident companies on worldwide income and non-residents on Rwandan-source income, administered by the Rwanda Revenue Authority (RRA). The rates below reflect the position at the last review, and they have moved recently: the corporate rate was cut in 2023 and a package of reforms took effect during 2025.
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What is the corporate income tax rate in Rwanda?
Corporate income tax is 28% of taxable profit under Article 48 of Law N° 027/2022 of 20/10/2022, as amended by Law N° 051/2023 of 05/09/2023, which cut the rate from 30% and came into force on 14 September 2023, the day it was gazetted. The amending law has no transitional rule, but RRA's published guidance for a 2023 calendar-year tax period applies 30% to profit for 1 January to 13 September 2023 and 28% for 14 September to 31 December 2023, apportioned by days; 28% applies from 2024 onwards. Newly listed companies pay 20% or 25% for five years, deposit-taking microfinance institutions 0%, small businesses 3% of turnover and micro-enterprises a flat amount; gaming companies pay 40% of wagers less winnings instead. Registered investors may qualify for Investment Code rates. Residents are taxed on worldwide profit with credit for foreign tax; non-residents on the profit of a Rwandan permanent establishment.
What is Rwanda's VAT rate and when must I register?
Standard VAT is 18%, with 0% for zero-rated supplies such as exports. Registration is compulsory within seven days of the end of the relevant period (the year for the RWF 20 million annual test, the quarter for the RWF 5 million quarterly test) once taxable turnover exceeded RWF 20 million in the previous year or RWF 5 million in the preceding quarter (Article 11 of Law N° 020/2023 on tax procedures), unless all your activities are VAT-exempt; voluntary registration is possible. Under Article 28 of Law N° 049/2023, a business with turnover up to RWF 200 million files quarterly within 15 days after the quarter (or monthly by choice); larger businesses file monthly. Law N° 009/2025 ended the exemptions for land transport of goods, mobile phones and SIM cards, ICT equipment and imported hybrid vehicles, and set end dates for others. Every sale must be invoiced from an RRA-certified electronic invoicing system.
What withholding tax applies to dividends, interest, royalties and fees paid abroad?
The general withholding tax rate is 15% on dividends, interest, royalties and service fees (including management and technical fees), reduced under a double taxation treaty where one applies. A 5% rate applies to dividends and interest on securities listed on the Rwanda Stock Exchange in specified cases. Investors on the 3% regimes, and licensed financial-services businesses on the 15% rate, can benefit from 0% withholding on dividends, interest and royalties under the Investment Code. Profits repatriated from a branch, and retained earnings converted into shares, are also treated as withholding-tax payments.
Which countries have double taxation treaties with Rwanda?
RRA's International Agreements page publishes tax treaties with 16 jurisdictions: Angola, Barbados, Belgium (with a Protocol), Benin, China, Congo (Brazzaville), the Czech Republic, Jersey, Luxembourg, Mauritius, Morocco, Qatar, Singapore, South Africa, Turkey and the United Arab Emirates, plus the multilateral Convention on Mutual Administrative Assistance. The Democratic Republic of the Congo is not on the list, and treaties with Hong Kong and Botswana reported in 2026 are not yet shown. Rates differ: for example China, Singapore and the UAE cap dividends at 7.5%. The payer must file the recipient's tax residence certificate with the withholding tax return (Article 22 of Law N° 020/2023), and should confirm the treaty is in force for the year of payment.
Is there capital gains tax when I sell shares in a Rwandan company?
Yes. Since 29 May 2025, gains on the direct or indirect sale of shares in a Rwandan company, in Rwanda or abroad, are taxed at 10% (previously 5%) under Law N° 014/2025. As under the 2022 Income Tax Law, the Rwandan company whose shareholders change withholds and pays the tax within 15 days after the month of the transfer, so the sale agreement should make the seller fund it. The 2025 law added licences, debt instruments, options and guarantees, on which the seller or buyer withholds. Gains on securities listed on a Rwandan exchange and on collective investment scheme units are exempt. Registered investors (except on commercial immovable property) and qualifying angel investors have Investment Code exemptions; confirm with RRA how they apply after 2025.
Have there been recent tax changes in Rwanda that foreign investors should know about?
Yes. Since 29 May 2025 capital gains tax is 10%; VAT exemptions ended for land transport of goods, mobile phones, SIM cards, ICT equipment and imported hybrids; a new excise law taxes cosmetics at 15%, telecoms rising to 15% and financial-transaction commissions at 15% (start date to be confirmed); and gaming pays 40% of net wagers. A 3% tourism tax and a 0.2% plastic-packaging import levy apply from 1 July 2025. A 1.5% digital services tax on any company with a substantial national presence is enacted but awaits its Ministerial Order. In 2026, non-resident online suppliers had to register for VAT, transfer pricing rules were rewritten, and the industrial VAT exemption ended on 30 June.
PAYE under Article 56 of Law N° 027/2022 is 0% on the first RWF 60,000 a month, 10% to RWF 100,000, 20% to RWF 200,000 and 30% above. Casual labourers pay 15% above RWF 60,000, and any employer other than the first withholds a flat 30%. Nationals and foreigners are treated alike. Residents (a permanent home or habitual abode in Rwanda, 183 days in the year, or presence after averaging over 122 days in each of the two prior years) are taxed on worldwide income. A company car adds 10% and housing 20% of cash pay. Employers with turnover up to RWF 200 million declare PAYE quarterly within 15 days (monthly by choice); larger employers file monthly.
What are the transfer pricing and thin capitalisation rules?
Related-party dealings must follow the arm's-length principle. Transfer pricing documentation is required where turnover exceeds RWF 600 million, or where a single controlled transaction reaches RWF 10 million or aggregate controlled transactions reach RWF 100 million; failures attract a 5% fine on the transaction value. Interest on related-party loans above four times paid-up equity is not deductible, and deductions for management, technical and royalty fees paid to related non-residents are capped. Get the intercompany agreements right at the outset.
The corporate income tax return and payment are due by 31 March after year end, with prepayments by 30 June, 30 September and 31 December. Since 25 September 2026, a business with turnover of RWF 1 billion or more needs accounts certified by an RRA-approved professional and may file provisionally, adding certified statements within three months. VAT and PAYE are declared and paid within 15 days after each quarter where turnover is up to RWF 200 million (monthly by choice), and monthly above that. Withholding tax is declared within 15 days after the month. RSSB contributions are due by the 15th of the following month. Keep records for ten years.
What are the penalties for late filing, and how are tax disputes resolved?
Late declaration and payment cost a fine of 20%, 40% or 60% of the tax as the delay grows (5%, 10% or 30% if only payment was late), plus interest of 0.5%, 1% or 1.5% a month, capped at the tax. Answer a draft rectification note within 30 days after a comprehensive or transfer pricing audit, five after an issue-oriented or refund audit. Appeal an assessment to the RRA Commissioner General within 30 days; paying the undisputed part suspends collection, and an appeal undecided after 30 days (extendable by 30) is deemed well-founded. Within 30 days of the decision you may request amicable settlement under Directives N° 002/2024, paying 25% of the principal tax or giving security, or go to the Commercial Court. Law N° 020/2023 on tax procedures governs this.
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This page gives legal and tax information, not legal advice. Rates, thresholds and procedures change; the answers are re-checked against official sources every month, but you should confirm anything important with the relevant authority or a licensed Rwandan advocate before you act.