Rwanda Tax Guide 2026 2027

HLB-Rwanda Tax Guide 2026-2027

Overview

Rwanda’s recent tax amendments mark a deliberate shift toward broadening the domestic revenue base, formalizing digital commerce, and aligning cross-border transactions with international standards. Businesses operating in Rwanda face critical structural updates spanning Corporate Income Tax (CIT), capital gains, withholding obligations, Value Added Tax (VAT), and Transfer Pricing (TP) enforcement.

Major Structural and Legislative Shifts

  • Income Tax & Capital Gains: The standard CIT rate under the real regime remains at 28% for businesses generating above FRW 20 million. Capital gains tax doubled from 5% to 10%, with mandatory withholding extended across all transacting parties. Gaming activities shifted from a 13% tax to a CIT exemption paired with a 40% tax on net wagers.

  • Digital Economy Taxation: A direct 1.5% tax applies to gross Rwanda-sourced digital service revenues, supplemented by a specialized registration, withholding, and tax-point regime for cross-border electronic supplies.

  • Sectoral Levies and Social Contributions: New targeted levies include a 3% tourism tax on accommodations, a 2% environmental customs levy on plastic-packaged goods, and an FRW 50 per liter strategic petroleum reserve levy. Mandatory pension contributions expanded from 6% to 12% of gross salary, charting a phased increase toward 20% by 2030.

  • VAT Adjustments: Exemptions for hybrid vehicles, fuel, and standard goods transport were eliminated, while targeted incentives for electric vehicles and energy equipment were extended through 2028.

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