Rwanda

The new Income Tax Law (ITL) issued in October 2022, together with the pension reforms at the end of 2024 introduced, among others, the below significant changes in personal income tax (PIT):

• The definition for a resident individual has been expanded to add an individual who has been present in Rwanda during the tax period and two preceding periods for an average of 122 days.

• An exemption for PIT during the first five years of foreign-sourced income awarded to a resident taxpayer who was not a resident in Rwanda in the last five years and who is an expert or professional working for an entity carrying out Kigali International Financial Centre (KIFC) licensed activities.
• Tax bands for PIT have also been revised (see Personal income tax rates in the Taxes on personal income section for more information).
• Increase in the mandatory pension contribution from the 6% to 12% effective January 2025. The rate will be increased to 14% effective January 2027 and will progressively increase to 16%, 18% and 20% annually between January 2028 and January 2030.