The Rwanda Revenue Authority has confirmed the following changes to Table 2. The effective date is from 1 November 2023.
Annual
| From | To | Rate |
| 0.00 | 720 000.00 | 0% |
| 720 000.01 | 1 200 000.00 | 10% |
| 1 200 000.01 | 2 400 000.00 | 20% |
| 2 400 000.01 | And above | 30% |
Monthly
| From | To | Rate |
| 0.00 | 60 000.00 | 0% |
| 60 000.01 | 100 000.00 | 10% |
| 100 000.01 | 200 000.00 | 20% |
| 200 000.01 | And above | 30% |
The new tax file is included with Release 6.1b. Click here to find out more.
Please Note:
- The Tax Table is only applicable from 1 November 2023 and not for the full Tax Year.
- Due to this change only being applicable for part of the tax year, you received an important email instructing you how to prepare your payroll before you update your payroll to this release
- If you have not yet followed all the steps set out, please contact your accredited Sage Business Partner to assist you.
Instructions as per mailer on 9 November 2023
Please take note of the Important information below
- New tax tables for Rwanda will be available on 13 November 2023 on the Sage Portal.
- Your payroll must be on Release 6.1a, before you install Release 6.1b, which includes the latest Rwanda Tax tables.
- All changes will be applied in the current pay period and will affect Net Salaries.
- The tax tables are affective from 1 November 2023 and not for the full tax year.
- Follow the steps below before the deployment to ensure that employees are taxed according to the correct tables.
Make a backup of the company
If your company uses Annual Tax Calculations, please follow the steps below in your Current Rwanda Company:
1. Ensure your Company is in November 2023
2. Copy the Company structure to a new number and access the new company. (On the Company Listing Page, select Add Company > Copy Company Structure)
3. Access the newly created company to ensure that it created correctly.
4. Transfer employees from current company to the new company.
- Transfer without YTD figures.
- Transfer without Clear Payslip.
- Termination Date = 31/10/2023
- Tax Year Start Date = 01/11/2023.
- Retain existing Engagement Date and Service Periods.
(From the Main Menu > Employee > Transfer Employee)
- Transfer From: (this will be the original Rwanda Company)
- Transfer To: (this will be the new Rwanda Company
5. Clear the payslips for November in the current company (this will be in the original company).
- Ensure that you clear Earnings, Deductions and Perks Tax Values
- There might be a Tax difference in November because the employees were terminated for a previous month.
- Decide how you want to handle the tax differences. (Refund to the employees; load it as additional tax to get a zero net salary effect; or load it as additional tax to get a zero Net Salary effect and then load the same values in the new company as additional tax)
6. Print a report with Tax values per employee
7. Make a backup and roll the company with terminated employees to a new pay period to avoid any further tax calculations.
Follow the steps below in your New Company
8. Ensure that all Payslip values are correct
9. Do the input for November
10. If you decided to carry tax values over to the new company – capture the additional tax values.
You are now ready to install Release 6.1b - Follow the steps below
11. Make a full system backup
12. Install Release 6.1b (follow the installations instruction)
13. Access the payroll and update all companies to R6.1b
14. Your payroll should now be updated and ready to go!
If your company uses Monthly Tax Calculations
- Ensure that your Company is in November 2023
- Make a full system backup
- Install Release 6.1b (follow the installation instructions)
- Access the payroll and update all companies to R6.1b.
- Do a general recalculation in your Rwanda company after after you updated the company to R6.1b. This can change your tax values for November as it is now recalculated based on the latest tax table.
- Process your payroll and Print your November reports, reflecting the new tax values.
Information regarding the changes will be available in the Release notes, available from the link on the company listing screen, after the installation of 6.1b
Should you require assistance with applying these steps, please contact your Sage accredited Business Partner.
Regards
Your Sage Premier Payroll support team