Types of Withholding tax

The law provides progressive tax rates of 0%, 10%, 20%, and 30%, depending on the employee's income bracket. This tax is withheld by an individual or an entity that pays its employees in cash or in kind. An employer who is not the first employer is required to withhold tax on Employment Income at the rate of thirty percent (30%).

Withholding Tax on allowance allocated to a member of the Board of directors and any other member of a similar organ, is taxable at a rate of thirty percent (30%). 

A 15% tax is levied on payments made by resident persons (including tax-exempt entities) to:

• Individuals not registered in the Rwandan tax administration, or
• Registered taxpayers without a recent income tax declaration.

The 15% tax is applied to the difference between a player’s winnings and the amount invested.

A 5% tax is levied on the cost, insurance and freight (CIF) value of goods at customs before they are released.

• A 3% tax is withheld on the invoice amount (excluding VAT) when successful bidders of public tenders are paid.
• A 15% rate applies if the tender recipient is not registered with the Tax Administration or is registered but has no recent income tax declaration.

A Withholding Tax on payments made to a person registered with the Tax Administration is deducted from income tax during the income tax declaration and its payment.

This tax of 18% is withheld by a public procuring entity on all payments made for taxable goods and services supplied by successful bidders. 

This is a loyalty tax withheld by a local mineral processing facility or a person who exports minerals from Rwanda. If the miner and the exporter constitute the same operator, in this case, the Withholding Tax obligations apply to the exporter who pays both the mining royalty tax and the export tax. The rate of WHT on minerals varies between 0.5% and 3% depending on the type of mineral.

This is a 15% tax withheld on dividends except those paid between resident companies and unrealized foreign exchange gains on outstanding loan and income distributed to the holders of shares or units in collective investment schemes.