Last month, Rwanda gazetted different laws implementing tax
policy reforms announced by the Government in February 2025. The
reforms are mainly aimed at boosting domestic revenue mobilisation,
and include income tax reforms, the introduction and reinstatement
of indirect taxes on certain goods and services and the adoption of
new taxes. Below are the key highlights of the said reforms.
1. Income Tax Reforms
The income tax-related reforms are contained in Law nº
014/2025 amending Law nº 027/2022 establishing taxes on income
as amended (the "Income Tax Amendments
Act").
The notable changes under the Income Tax Amendments Act include
the extension of the scope of application of capital gain tax from
share transfer transactions to the transactions involving transfer
of other securities such as debt instruments, options, guarantees
and similar assets. The Income Tax Amendments Act also increases
the CGT rate from 5% to 10%.
