Let’s understand the taxation system of Rwanda into two categories, namely: domestic taxes and custom taxes.

Domestic taxes are taxes that are levied on economic activities, goods, services, or income generated within a country’s borders while Custom taxes are taxes imposed on goods when they are imported into or exported out of a country.

Domestic taxes are further divided into Decentralized taxes and Centralized taxes.

Decentralized taxes are levied and collected at district level, hence the common name "District taxes.” They include the trading license, Immovable property tax, rental income tax, and market fees. Centralized taxes are levied and collected by the Rwanda Revenue Authority (RRA). These taxes include: Personal income tax, Corporate Income tax, Value Added tax, Pay as you earn, Excise duty, Withholding tax, and Social security contributions.

The focus of this article is centralized taxes. Below is a detailed breakdown of each tax under the centralized category:

1. Domestic centralized taxes

Centralised taxes in Rwanda apply to individuals and entities operating within the country's borders. They include Personal income tax, Corporate Income tax, Value Added tax, Pay as you earn, Excise duty, Withholding tax, and Social security contributions.

1.1. Corporate income tax (CIT)

Corporate Income Tax is collected from businesses and companies operating within Rwanda. The general CIT rate is 30%. However, incentives are provided for companies listed on the capital market: