Individual - Significant developments

Last reviewed - 20 July 2022

The government of Rwanda introduced a new law (Law n°003/2016 of 30 March 2016) to govern maternity leave benefits. The law became operational with effect from November 2016. The law requires all employers and employees to each contribute 0.3% of the employees' gross remuneration towards a maternity fund. The fund is administered by the Rwanda Social Security Board (RSSB).

The new law provides full pay for new mothers throughout the 12-week maternity leave minimum. Similar to social security contributions, the law covers international and national organisations and employees operating in Rwanda.

See Payroll taxes in the Other taxes section of the Corporate tax summary for a more detailed description of the new maternity Law requirements.

A new income tax law (Law n°16/2018 of 16 April 2018) was gazetted, repealing Law n°16/2005 of 18 August 2005 on direct income tax and all prior legal provisions, including the Commissioner General’s rules and Ministerial orders contrary to this law.

The law entered into force on 13 April 2018. In the new law, a number of amendments were made. The more significant updates to individual taxation relate to definitions of employee, employer and first employer, taxation of benefits in kind, and persons exempted from employment tax.