PAYE changes starting November 2023 communicated by RRA in 2022.

This is to inform all taxpayers about the upcoming changes on the Pay As You Earn tax Based on the modifications made to the income tax law in the last year, these changes will come into effect from November 2023.

The following new Pay As You Earn rates will be charged on the taxable employment amount:

Depending on what is agreed as per employment contract with the employee, it might impact the employee’s net paid-out salary or the overall payroll cost for the business.

1) In case the contractual net salary is fixed

The net paid-out salary to the employee remains unchanged. PAYE changes in accordance with the new law, which reduces the overall payroll cost for the business.

The net salary remains the same, but the overall cost of the organization’s payroll changes.

For contractual net salaries of RWF 200,000 and above, the overall cost will be reduced by approximately RWF 22,000.

2) In case the contractual gross salary is fixed

The net paid-out salary increases based on the new PAYE calculation.

The overall cost of the organization’s payroll remains unchanged.

For contractual gross salaries of RWF 200,000 and above, the net paid-out salary increases by approximately RWF 14,000.

RRA ‘s official confirmation letter:

For questions or concerns don’t hesitate to contact us via: contact@visionsafrica.com