Rwanda
Top Income Tax
30%
Marginal rate
Corporate Tax
30%
Standard rate
VAT / Sales Tax
18%
Standard rate
Capital Gains
5%
Standard rate
Overview
Rwanda is Africa's rising star with a business-friendly government, low corruption, and ambitious digital economy goals. Kigali is one of Africa's cleanest and safest cities. Tax incentives for strategic investments make it attractive for businesses targeting East Africa.
Income Tax Brackets
| Income Range (RWF) | Tax Rate |
|---|---|
| 0 - 360,000 | 0% |
| 360,000 - 1,200,000 | 20% |
| 1,200,000+ | 30% |
RWF annual amounts. Simplified system with only 3 brackets.
Corporate Tax
Standard Rate
30%
30% standard. Reduced 0% for strategic investors and priority sectors for up to 7 years.
VAT / Sales Tax
Standard Rate
18%
Reduced Rates
0%
18% standard. 0% on exports and essential goods.
Capital Gains Tax
Standard Rate
5%
5% withholding tax on capital gains.
Social Security Contributions
Employee
5%
Employer
5%
Self-Employed
5%
RSSB contributions: 3% pension + 0.5% occupational hazards each.
Special Tax Regimes
Special Economic Zone Incentives
0% corporate tax for up to 7 years for strategic investments. Preferential rates after.
Eligibility: Must invest in priority sectors designated by Rwanda Development Board.
Pros & Cons
Pros
- Very low cost of living
- Business-friendly government
- Low corruption for Africa
- 5% capital gains tax
- Clean and safe (Kigali)
Cons
- 30% income and corporate tax
- Small domestic market
- No digital nomad visa
- Limited infrastructure
- Developing economy
Living Indicators
Cost of Living Index
Very affordable
Quality of Life Index
Below average
Best For
Data Sources
Tax rate data for Rwanda is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Rwanda government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.