Rental Income

Tax on rent is charged on income generated from rented houses and located in Rwanda irrespective of the country of their benefiaries residence or home. This tax is charged on profit on rented houses and land and rennet profit of a person who rents out any assets or part of it.

Those liable to pay tax are:

(i) The owner of the goods, possessor or usufructuary of the fixed assets;

(ii) The beneficiary of the net profit from rental income of land and buildings

Those exempted are:

(i) Houses or buildings of the Government, province/ city of Kigali, Districts or towns and public institutes with exception of those meant for commercial activity;

(ii) Interests on rent obtained from any income generating activity on corporate tax that are exempted to rent interest.

Tax rates

Amount of income in frw___________ Rate

From 0 to 60,000 ________________________0%
From 60,001 to 180,000___________________10%
From 180,001 to 300,000__________________15%
From 300,001 to 600,000 _________________ 20%
From 600,001 to 1,000,000 _______________25%
Above 1,000,000 _______________________30%

Note that a copy of rent contract is submitted to district or town Administration in the same time with the income tax declaration.

The tax on rent income together with tax declaration is submitted to Tax collector of the district or town not later than 31st March of the following year in which interests are obtained.