Rwanda Tax Tables Update | Deel Local Payroll | 2026
The Rwanda Revenue Authority (RRA) has announced a new law establishing taxes on income no. 027/2022 of 20/10/2022 published in the official gazette no special of 28/10/2022.
Considering that due to the Rwanda Tax Tables update, the tax administration system has to be adapted to the changes provided for by the law regarding the new brackets on which tax computation will be based, RRA announced to all taxpayers that the provisions of this new law in article 56 related to the withholding tax on employment income will be applied from the month of November 2022, which tax period will be declared and paid not later than 15 December 2022.
Click here for the official document.
Rwanda Tax Tables update
Article 56 (Withholding tax on employment income) of the new law provides the rates that will be applied to employment income as per below:
- Table 1: First year following the date of commencement of this law
Monthly taxable income in Rwandan francs (FRW)
Tax Rate
From
To
0
60 000
0%
60 001
100 000
20%
100 001
More
30%
The above tax table is applicable from 1 November 2022 to 31 October 2023. Please note the tax table above is a monthly tax table.
- Table 2: From the second year after the commencement of this law
Monthly taxable income in Rwandan francs (FRW)
Tax Rate
From
To
0
60 000
0%
60 001
100 000
10%
100 001
200 000
20%
200 001
More
30%
The above tax table is applicable from 1 November 2023. Please note the tax table above is a monthly tax table.
In Rwanda, a month-to-date tax method is the only calculation method for withholding taxes on employment income. There is no annual regularisation of taxation on employment income where an employee only earns employment income therefore a year-to-date tax method should not be available for customers.
Income from a casual labourer is subject to tax at the special rate of fifteen percent (15%).
However, in computing casual labourer’s tax, an income not exceeding sixty thousand Rwandan francs (60 000 FRW) per month is rated at zero percent (0%).
Article 57 of the new law states that an employer who is not the first employer shall withhold tax on employment income at the rate of thirty percent (30%).
Impact of the Rwanda Tax Tables update on PaySpace
The new thresholds and rates, as set out below, are applicable from 1 November 2022 to 31 October 2023.
Annual Tax tables:
Lower Income Limit
Upper Income Limit
Income Threshold
Marginal Rate
Tax on Threshold
0
720 000.00
0.00
0%
0.00
720 000.00
1 200 000.00
720 000.00
20%
0.00
1 200 000.00
99 999 999 999.00
1 200 000.00
30%
96 000.00
- This change is effective for the period 1 November 2022 to 31 October 2023.
- All Rwanda payrolls have been recalculated.
- All customers must switch to the Non-cumulative tax method on the Basic Company Information screen from November 2022 going forward, to circumvent two tax tables in one tax year.
- Please note that the Average tax method will be removed in the new tax year (January 2023).
Should you have any questions regarding the Rwanda Tax Tables update, please feel free to visit our Support page for more ways to get in touch, or email us at support@payspace.com.
The PaySpace Team