Rwanda

Individual - Other taxes

Last reviewed - 22 January 2020

Social security contributions

Rwanda has a national social security fund known as the Rwanda Social Security Fund (commonly known as Caisse Social du Rwanda or CSR). All salaried workers, both nationals and foreigners, working in Rwanda are required to contribute to the scheme. The employer is required to contribute 5% of the employee's gross salary to the scheme, while employee's contribution is 3%.

The employer is mandated to deduct social security contribution from employees every month. However, the employer is required to remit total contribution on a quarterly basis, during the month following the end of the quarter. The mandate of collecting social security contribution is with the Rwanda Revenue Authority (RRA).

Consumption taxes

Value-added tax (VAT)

An individual trader is liable for VAT on the same basis as a company. VAT is an indirect tax, which is largely directed at the domestic consumption of goods and services, and at goods imported into Rwanda. The tax is designed to be paid mainly by the ultimate consumer or purchaser in Rwanda. Goods and services are either exempt from VAT, or are levied at two rates, namely a standard 18% rate and a zero rate.

Most business transactions carried out in Rwanda are subject to VAT. The tax is collected by businesses that are registered for VAT by the RRA on all taxable supplies throughout the production and distribution chain. Sales or supplies by non-VAT registered person are not subject to VAT.

Net wealth/worth taxes

Rwanda does not levy any net wealth/worth taxes.

Inheritance, estate, and gift taxes

Rwanda does not levy any inheritance, estate, or gift taxes.

Property taxes

Property tax is levied on registered land and buildings/houses whether in use or not, according to rates determined by the districts. The tax varies from district to district.

Luxury and excise taxes

Excise duty is levied on certain locally manufactured goods, as well as their imported equivalents. Excise duty of 150% is levied on cigarettes; 60% on beer; 70% on brandies, liquors, and whisky; and 8% on telephone communication. There is also excise duty on motor vehicles ranging between 5% and 15%.

Relief from excise duty is available for exported products.

Transfer taxes

There is a transfer tax that is levied on transfer of property.