One of the daunting issues every business face borders on statutory obligations such as Taxes and Fines.

Trust me, these are real business issues which cannot be left undiscussed!

So, today’s episode of Starting and Scaling a business in Africa centers on Statutory Obligations, specifically as it relates to Rwanda.

Navigating the Business terrain in Rwanda

No doubt, Rwanda is one of the smallest markets in Africa, but prides herself as a gateway to Africa. And, experientially speaking, this is not a PR gimmick as they have been able to strategically organize their resources and also, have the following working for them:

1. Gateway to cross border trade in Africa especially East-Central Africa with an estimated population of 268 million
2. Resolute leadership with stability mindset.
3. Highly secured country where the police is truly your friend.
4. Rwanda has an outstanding relationship with European union and other multilateral organizations
5. Rwanda has a growing private sector and large-scale infrastructure projects
6. Rwanda is an hotspot for youthful innovation such as DesignHub, Norrsken House, Officephase among others.
7. Thriving financial services especially Fintech and banking sectors.

However, if you are about to register your business in Rwanda or already have a registered business in Rwanda, below are some of the statutory Implications for having a local enterprise or doing business in Rwanda:

1. Company Income Tax Return: Yeah! I had to start with this because most people may register and not operate. Nonetheless, Rwanda does not give room for non-operating incorporation/business.

   • In Rwanda, if no business is done, you have to file Annual returns even if it is Zero/Nil returns, it is statutory to do this annually.

2. Public Cleaning Filings: It is imperative to know that Rwanda is not just the cleanest city in Africa by chance! Companies operating in Rwanda pay their cleaning bills monthly. As at 30^th June, 2023, the cleaning bill is approximately $9 monthly. it is important to note that this monthly fees starts counting for you from the exact date of your business incorporation .
3. Advertising fee: In Rwanda, Online Ads is not taxable yet, but once that ad gets into the billboards, get ready to pay more. And, this is aside paying your Ads agency and the bill board times. The government also has some share on your bill board time. Know this and know peace!
4. PAYE:This is a payroll segment of doing business in Rwanda.  And, like every other nation, personal income tax is compulsory in Rwanda. However, there is a peculiar calculation to this.
5. Maternity Contribution for Employee: You may have heard this before so, take this point as a confirmation. Rwanda is a gender-conscious country hence, as an employer, you have to help the society keep this contribution growing by contributing your quota.
6. Rwanda Social Security Fees: Also, in payroll, both social securities and pension fees are included. Currently, Rwanda has close to 6million members enrolled in the pension scheme. Hence you need to comply with this as an employer.
7. Community based health insurance: This is popularly called CBHI in Rwanda. It is currently the largest health insurance scheme in the country.This is also a payroll deductible.

Please note outsourcing companies in Kigali such as HRLeverage Africa can help you handle some of this payroll related statutory compliances.

Need to know more?

Unfortunately, that is all you can know for now!

But, take this extra…

You may have to acquire some licenses depending on the nature of your business.

However, by default, all companies in Rwanda must have a local address to make the above Rwanda compliance remittances easier, especially when verification is needed. You may need to register for virtual address through here

If you need to have a deeper understanding of doing business in Rwanda, contact Officephase on WhatsApp +250 791 956 445.