{{Businesses earning Frw2 Million or lower in a year have been exempted from taxes. Rwanda Revenue Authority has said.}}
Ben Kagarama, the Commissioner General of RRA, said at a news conference, “any business that makes Frw2 million or less will be exempted from taxation.”
He added that other businesses making Frw2-4 million a year will pay a flat tax of Frw60,000 whereas those making Frw4-7 million will pay Frw120,000 a year.
Also businesses that generate incomes between Frw7-10 million will pay a total of Frw210,000 while those earning Frw10-12 million will pay Frw300,000 annually.
Rwanda Revenue Authority says the new changes come after talks with the traders and the Private Sector Federation.
“We devised a new tax regime which is now imbedded in a new law to make it easy for the businesses to declare taxes,” says Kagarama.
“previously, businesses making between Frw1.2M and Frw20M were were paying 4% of income..this was considered exorbitantly high. In the new adjustments business that earn Frw2M and lower, have been exempted from taxation.”
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