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Rental Income Tax
This tax is levied on income generated by an individual or any other person who is not subject to corporate income tax from renting out immovable property, such as buildings or plots.
Rental income tax is charged to the following:
• Income from rented buildings in whole or in part
• Income from rented improvements in whole or in part
• Income from any other rented immovable property located in Rwanda.
Tax Rates
| Taxable Income | Tax rate |
| 0 - 180,000 Frw | 0% |
| 180,001 – 1,000,000 Frw | 20% |
| Above 1,000,000 Frw | 30% |
Rental income tax is calculated based on the income earned from renting immovable property. The taxable income is determined as follows:
1.Standard Deduction:
Taxable rental income = Gross rental income - 50% of Gross rental income (assumed as maintenance and upkeep expenses).
2. With Loan Interest:
If the taxpayer provides proof of bank interest payments on a loan used to construct or purchase the rented property, the rental income tax is calculated as follows:
Taxable rental income = Gross rental income - 50% of Gross rental income- Actual bank interest paid (from the beginning of the rental period within the tax year).
A person who earns a taxable rental income files a rental income tax declaration via the Rwanda Automated Local Government Taxes Management System not later than 31st January of the following year.
Deadline: January 31 of the following year.
Needed supporting documents: The agreement for renting an immovable property is written and signed by the owner of the rented property and the tenant.
A copy of this contract must be provided to the tax administration within 15 days from the date of its signing.
After declaration, the rental income tax can be paid through the following methods: Mobile Money, Airtel Money, MobiCash, Internet Banking or Mobile banking.