Individual - Significant developments

Last reviewed - 18 July 2023

New Income Tax Law (ITL) issued in October 2022 introduced, among others, the below significant changes in PIT:

  • A definition for a resident individual has been expanded to add an individual who has been present in Rwanda during the tax period and 2 preceding periods for an average of 122 days.
  • An exemption for Personal Income Tax (PIT) during the first 5 years of on a foreign sourced income awarded to a resident taxpayer who was not a resident in Rwanda in the last 5 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 the Personal income tax rates in Taxes on personal income of the Individual tax summary for more information).