Business Licences

Under articles 44 to 53 of law No.17/2002 of 10/05/02 establishing the sources of revenue for districts and towns and its management, the duty for Licence to carry out trade or profession is payable each year by natural persons that normally carry out an activity for gain on a non-salaried basis and by corporate person on organisation that are liable to pay corporate taxes.

The tax must be paid in full before starting the activity for which it is paid . For on going business, the duty is paid by the 1st quarter of every year. The tax varies according to the type of activity. The tax is determined according to where the taxpayer is operating or to the place of his/her usual residence. However, there are exemptions from trading Licence requirement including the following:

The State of Rwanda, its Provinces and Districts and towns when they carry out none-profit making activities;

Corporate persons or organisation that are exempt from corporate taxes in accordance with articles 5 of the law on the code of direct taxes on various profits and professional income;

Natural or corporate persons who are engaged in Agricultural or livestock activity.

Fixing trading Licence

The trading Licence is determined is determined by the basic Licence “P” which may vary as specified by article 47 of law No.17/2002 by taking into account the type of activity and where it is operated. The basic trading licence is fixed every year by the council of the district, town or Kigali city where taxpayers are based but it can not exceed 2000 Frw.

The District, Town or Kigali city specifies each year the location to be taken as rural or urban area.The duty sticker issued shall be posted in plain view at the entrance to the establishment where the operations to which it relates are carried on or on the vehicle for which it is issued or worn, in plain view by the person responsible for collecting receipts.

Trade licence is charged on activities as follows:

Each district or town fixes the rate of the tax on rent in accordance with the provisions of this article. The estimated rates can not exceed these shown in the scale below

Type of activity	Base P	Rural Area	Town	City of Kigali
A)Vendors without shops,small scale technicians who do not use machines,transporters of people and property on motorcycle	PA	1PA	2PA	2PA
B)Traders and technicians who use machines	PB	5PB	10PB	20PB
C)Any transporter not mentioned under A	PC	10PC on each car	10PC on each car	10PC on each car
D)Hotel business self employed	PD	5PD	30PD	100PD
E)Professinal taxpayer services rendered to others and the like	PE	10PE	20PE	20PE
F)Industries,imports and export business	PF	120PF	120PF	120PF
G)Insurance,banking and the like	PG	30PG	100PG	100PG

A copy of the rent contract is submitted to the district so as to allow it to know and control the fixed rates.