Rwanda

Individual - Sample personal income tax calculation

Last reviewed - 30 July 2020

This sample PIT calculation assumes two resident individuals whose annual income is RWF 45,000,000, each. Employee 1 is provided with an employer-owned house and car for private use, while the employer rents a house and car at RWF 1,000,000 and RWF 350,000, respectively, for Employee 2. Both of the employees have children attending school, and the employer provides an education allowance of RWF 720,000 per year to each, but paid on a monthly basis.

Individual PAYE calculation

Item Employee 1

(monthly)

(RWF)

Employee 2

(monthly)

(RWF)

Salary 3,750,000 3,750,000
Education allowance 60,000 60,000
Total cash 3,810,000 3,810,000
Add: Non cash benefits (benefits in kind)
Company-owned house provided to Employee 1 (20% of 3,810,000) 762,000 -
Company-owned car provided to Employee 1 (10% of 3,810,000) 381,000 -
House rental cost on behalf of Employee 2 - 1,000,000
Car rental cost on behalf of Employee 2 - 350,000
Taxable income 4,953,000 5,160,000
PAYE thereon 1,469,900 1,532,000
Employee social security contribution (3%) 148,590 154,800
Employee maternity benefits contribution (0.3%) 14,859 15,480
Net pay 2,176,651 2,107,720
Employer social security contribution (5%) 247,650 258,000
Employer maternity benefits contribution (0.3%) 14,859 15,480