On 14 May 2020, the Rwanda Revenue Service made a public announcement to all private schools and taxpayers operating in tourism and hotel sector, registered on Pay As You Earn(PAYE). 

The PAYE tax for employees earning up to FRW150 000 net salary* is exempted.

• For the teaching and non-teaching staff of private schools earning PAYE will be waived for a period of 6 months from April 2020 to September 2020.
• For employees of companies operating in tourism and hotel sector, this waiver will apply for 3 months from April 2020 to June 2020.

*To avoid a calculation loop. Net salary = earnings – all deductions except for PAYE.

Effective date: April 2020.

Employers with a PAYE declaration of April 2020 already submitted without taking into consideration these exemptions can revise it.

There is a new PAYE declaration for the affected employers. (We are awaiting to obtain examples)

There will be no software changes required, however users will have to set the Tax Status of the applicable employees to No Tax for the period applicable to the specific employees. It is advisable that the user add a Memo for when the employee’s tax status must be changed back.

We will communicate report changes when detail becomes available.