Individual - Significant developments

Last reviewed - 28 February 2024

The new Income Tax Law (ITL) issued in October 2022 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).