Rwanda

Individual - Sample personal income tax calculation

Last reviewed - 21 March 2025

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 0
Company-owned car provided to Employee 1 (10% of 3,810,000) 381,000 0
House rental cost on behalf of Employee 2 0 1,000,000
Car rental cost on behalf of Employee 2 0 350,000
Taxable income 4,953,000 5,160,000
PAYE thereon (1,449,900) (1,512,000)
Employee pension scheme contribution (6%) (297,180) (309,600)
Employee maternity benefits contribution (0.3%) (14,859) (15,480)
Net pay (before CBHI) 3,191,061 3,322,920
Employee community based health insurance (0.5% of net pay) 15,955 16,614
Net pay (after CBHI) 3,175,106 3,306,305
Employer social security contribution (6%) 297,180 309,600
Employer occupational hazards scheme contribution (2%) 99,060  103,200
Employer maternity benefits contribution (0.3%) 14,859 15,480