Gazette no 16 of 16/4/2018 enforced changes to the taxation in Rwanda.
Retirement fund contributions:
Previously, retirement contribution made by the employer on behalf of the employee and or contributions made by the employee to a qualified pension fund to a maximum of 10% of the employee’s employment income or RWF1 200 000, whichever is the lowest was excluded from taxable income.
This exemption and deduction are no longer available for employee and employer contributions towards a qualifying fund other than the state social security fund (RSSB).
Retirement contributions made by the employer on behalf of the employee to the RSSB is fully exempt.
There is no deduction for employee or employer contributions to any retirement fund, including RSSB.
|
Employer contributions |
Taxability |
|
RSSB Pension |
Fully Exempt |
|
Other qualifying pension |
Taxable |
|
Other retirement contributions |
Taxable |
|
Employee contributions |
Tax deduction |
|
RSSB Pension |
No deduction |
|
Other qualifying pension |
No deduction |
|
Other retirement contributions |
No deduction |
Sitting allowance:
Sitting allowances allocated to the members of the Board of Directors are taxable at a rate of thirty percent (30%).
Effective date for the above changes is April 2018.
The tax file must be downloaded to your computer:
- Click here to download the latest tax file AFRTAX_PR5.1a_201901.zip
Once you have downloaded the file, follow the steps below how to extract the tax files, to complete the tax file update process.
- Click here for steps on how to download and extract the latest tax file.
If you require assistance with the above, please email us at [email protected]