Rwanda

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 the employee's contribution is 3%.

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

Capital gains tax (CGT)

There is no comprehensive law on taxation of capital gains for individuals. Capital gains on sale or transfer of shares is taxed at 5% on the difference between the acquisition value of shares and their selling or transfer price, where the gain is not expressly exempt from tax. See Capital gains tax (CGT) in the Other taxes section of the Corporate tax summary for more information.

Capital gains on secondary market transactions on listed securities, as well as employee share option schemes, are exempt from taxation.

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 persons 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

The immovable property tax is levied on the market value of a building and surface of a plot of land (see Property taxes in the Other taxes section of the Corporate tax summary for more information).

Luxury and excise taxes

Excise duty is levied on certain locally manufactured goods, as well as their imported equivalents. Please see Excise taxes in the Other taxes section of the Corporate tax summary for a list of excisable products, their respective rates, and exemptions available.

Relief from excise duty is available for exported products.

Transfer taxes

There is immovable property tax on sale of immovable property for commercial use (see the Transfer taxes in the Other taxes section in the Corporate tax summary for more information).