Registering a business in Rwanda is fast. Understanding what you owe RRA and RSSB afterwards is where most founders get stuck. Here are the essentials in plain English.
1. Your TIN comes with your business registration
When you register your business with the Office of the Registrar General at RDB, a Taxpayer Identification Number (TIN) is assigned automatically — the RDB and RRA systems are linked, so there is no separate RRA step. Registration is free and should be done within 7 days of starting your activity.
Keep your TIN handy: you’ll need it for every tax return, for EBM invoicing, and for opening most business bank accounts.
2. When you must register for VAT
VAT is charged at 18% (some supplies are zero-rated or exempt). You must register within 7 days once your turnover exceeds either threshold below. You can also register voluntarily — useful if your customers are VAT-registered businesses that want to reclaim input VAT.
- More than RWF 20,000,000 in the previous fiscal year, or
- More than RWF 5,000,000 in the previous calendar quarter.
3. How often you file
Both VAT and PAYE returns follow the same rule. Returns and payment are due within 15 days after the end of the period.
- Annual turnover of RWF 200 million or less: file quarterly (monthly is optional).
- Annual turnover above RWF 200 million: file monthly.
4. PAYE: tax on your employees’ salaries
As an employer you withhold PAYE from each employee’s monthly taxable income and pay it to RRA. The current monthly bands are:
| Monthly taxable income (RWF) | Rate |
|---|---|
| 0 – 60,000 | 0% |
| 60,001 – 100,000 | 10% |
| 100,001 – 200,000 | 20% |
| Above 200,000 | 30% |
5. RSSB contributions
On top of PAYE, payroll includes social security contributions, declared and paid to RSSB by the 15th of the following month:
- Pension: 12% of gross salary — 6% employer, 6% employee (since January 2025). The rate is scheduled to rise by 2 points each January from 2027.
- Maternity leave: 0.3% employer + 0.3% employee.
- Occupational hazards: 2%, paid by the employer.
- Community-Based Health Insurance (CBHI): 0.5% of the employee’s net salary, deducted by the employer.
6. Income tax for small businesses
Companies pay corporate income tax at 28% of profit. Smaller businesses can use simplified regimes based on annual turnover:
| Annual turnover (RWF) | Tax |
|---|---|
| Below 2,000,000 | No annual income tax return required |
| 2,000,001 – 4,000,000 | Flat tax of RWF 60,000 |
| 4,000,001 – 7,000,000 | Flat tax of RWF 120,000 |
| 7,000,001 – 10,000,000 | Flat tax of RWF 210,000 |
| 10,000,001 – 12,000,000 | Flat tax of RWF 300,000 |
| 12,000,001 – 20,000,000 | Lump-sum tax of 3% of turnover (or opt for real-profit taxation) |