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Personal Income Tax is levied on income received by an individual. Obligations of the concerned tax payers of income tax A resident taxpayer is liable to income tax per the tax period from all domestic source and foreign source. A nonresident taxpayer is only liable to income tax which has a source in Rwanda.
1° Employment income;
2° Business profits;
3° Investment income.
Taxable income is rounded to the nearest thousand (1,000) Rwandan francs and taxed according to the following table:
| Annual Taxable Income (RWF | ||
| From | To | Tax Rates |
| 0 | 360.000 | 0% |
| 360.001 | 1.200.000 | 20% |
| 1.200.001 | And greater than | 30% |
Intermediate business owners shall pay a lump sum tax of 4% on annual turnover.
An individual who receives taxable income prepares an annual tax declaration in accordance with procedures specified by the Commissioner General and he or she presents the declaration to the Tax Administration not later than 31stMarch of the following tax period.
A taxpayer who is exempted from an annual tax declaration mentioned in paragraph one of this Article is one who only receives:
1° income that is subject to withholding tax as provided for by article 48 of this law;
2° income on investment related that is subject to withholding tax as mentioned in article 51 of this law.
PAYE: is composed of
Wages, salaries, leave pay, sick pay, medical allowances, pension payment etc,
All kinds of allowances including any cost of living, subsistence, rent, and entertainment or travel allowances.
Find the guide for Income Tax for the year 2023 for taxpayers in Real Regime
Please watch the video for details about declaring the Income tax for the year 2023