Rwanda's new Ministerial Orders: e-invoicing, tax waivers, whistleblower awards and more

The four Orders are:

• Ministerial Order No. 006/26/10/TC on the electronic invoicing system, waiver of tax and the award for reporting tax evasion
• Ministerial Order No. 007/26/10/TC on the Tax Policy Committee
• Ministerial Order No. 008/26/10/TC on the renewal of the 0% corporate income tax rate for deposit-taking microfinance institutions
• Ministerial Order No. 009/26/10/TC on residence, place of effective management and certified financial statements

Because the Orders are already in force, businesses should review their position now. This alert focuses on Order 006, which affects the widest range of taxpayers, and then summarises the other three.

Part 1: Electronic invoicing, tax waivers and evasion awards (Order 006)

Order 006 implements Articles 17, 76 and 102 of Law No. 020/2023 on Tax Procedures. It also repeals the 2013 Ministerial Order on the use of certified electronic billing machines (EBM).

1. Electronic invoicing: from billing machines to an integrated system

The Order replaces the old EBM rules with RRA's electronic invoicing system (EIS). The most significant changes are:

• ERP integration. Businesses that issue invoices from an ERP or other accounting system must integrate that system with the EIS in line with RRA's requirements (Article 4).
• Buyer-initiated invoices. Where a seller is unable to issue an invoice, the buyer may initiate it and the seller must approve it (Article 5).
• Minimum invoice content. Every invoice must carry prescribed data, including the buyer's identification and the SDC stamp (Article 6).
• Limited exemption. Taxpayers who are not required to file an annual income tax return are exempt on a per-transaction basis, but must still approve invoices initiated by their buyers (Article 8).

Article 3 also sets out what every EIS user must do day to day:

• obtain the EIS from RRA, or hold a service contract where a licensed supplier's system is used;
• display the system where customers can see it, together with the business name, TIN, SDC number, VAT status and the notice "do not pay if an invoice is not issued";
• approve invoices initiated by buyers;
• print an EIS delivery note when moving stock between the business's own stores;
• issue a certified cancelled receipt, documented in line with RRA procedure, when cancelling a sale;
• report theft of the system to RRA within 12 hours and damage within 6 hours, and replace the system within five working days;
• issue manual invoices in two copies while the system is down, and capture them once it is restored; and
• ask RRA to deactivate the system when the business ceases.

Our view: For businesses already invoicing from an ERP, the integration requirement is the change that needs the most attention. It is a systems project rather than a paperwork exercise, and it should be scoped now. The 12-hour and 6-hour reporting windows are short, so they should be written into store and finance procedures rather than left to judgement on the day.

2. Tax waivers: a defined route to relief

The Tax Procedures Law already allowed the Minister to waive late-payment interest and administrative penalties, with waivers of principal tax decided by Cabinet. Order 006 now sets out how a request is made and assessed.

How to apply. The taxpayer submits RRA's prescribed application form with explanations supporting the request (Article 10). RRA reviews the application. If it considers the request valid, it sends a report to the Minister in charge of taxes setting out the taxpayer's profile, the amounts involved, the specific problem and the periods concerned. If not, RRA informs the taxpayer in writing. Where the request concerns principal tax, the Minister submits a report to Cabinet for decision. Under Order 007, the Tax Policy Committee is also consulted on waiver applications.

Conditions. Under Article 11, the taxpayer must:

• have consistently paid taxes before the financial hardship arose;
• remain compliant with tax laws and procedures; and
• provide evidence and documents issued by competent authorities showing the origin of the hardship.

Where the request concerns late-payment interest or administrative penalties, the taxpayer must also have paid the principal tax or have an agreement to pay it in instalments. A waiver is not available to a taxpayer who has committed tax evasion.

Our view: The Order gives taxpayers in genuine difficulty a clear, structured route to relief. Two points stand out. First, it sets no timeline for RRA, the Minister or Cabinet to decide an application, so taxpayers should apply early and plan for a period of uncertainty. Second, every route depends on a good compliance record before and after the hardship. A clean history is now, in effect, a precondition for relief.

3. A financial reward for reporting tax evasion

Article 102 of the Tax Procedures Law provides for an award to anyone who reports tax evasion, leaving the amount to be set by Ministerial Order. Order 006 now sets it.

Under Article 12, the person who reports tax evasion is entitled to 5% of the principal tax recovered or FRW 10 million, whichever is lower. The reward is paid by RRA and is based on tax actually recovered, not the amount assessed. Where the taxpayer pursues an administrative appeal, the reward is paid only after that process has concluded. The Order does not set a separate waiting period where no appeal is pursued.

Rwanda's approach is broadly comparable to Kenya's informer reward scheme, which pays the lower of 5% of the tax recovered or KES 5 million, although the detailed rules of the two schemes differ.

Our view: The reward gives employees, business partners and competitors a direct financial incentive to report suspected evasion. The Order does not yet explain how reports are submitted and verified, how eligibility is decided, or how information is linked to the tax eventually recovered, so further RRA guidance is likely. In the meantime, businesses should expect more third-party reports and make sure their records would withstand scrutiny.

Part 2: Tax policy, MFI incentives and tax residence (Orders 007, 008 and 009)

4. A seat at the table: the Tax Policy Committee (Order 007)

Article 100 of the Tax Procedures Law establishes a Tax Policy Committee to advise the Minister on tax policy. Order 007 sets out its make-up and working rules:

• It is chaired by MINECOFIN's Chief Economist, with members from RRA, MINICOM, RDB and Rwanda Finance Limited.
• The Private Sector Federation and civil society each hold two seats.
• It meets quarterly and decides by consensus or, failing that, by a two-thirds majority.
• It is consulted on tax waiver applications.

Our view: This creates a formal channel for private-sector input into tax policy. Businesses with policy proposals or concerns should route them through the Private Sector Federation and their industry associations.

5. 0% corporate income tax for deposit-taking MFIs: one renewal, six conditions (Order 008)

Under Article 46 of Law No. 027/2022 on Income Tax, approved deposit-taking microfinance institutions pay 0% corporate income tax for five years from approval, renewable on conditions set by Ministerial Order. Order 008 allows one renewal only, on written request to RRA. RRA consults the National Bank of Rwanda (BNR) and then approves in writing.

To qualify, the institution must meet all six conditions:

1. Footprint: five or more branches outside Kigali, in different districts
2. Digital lending: digital loans and savings offered in more than five districts
3. No dividends: none paid since the holiday began
4. Asset quality: non-performing loans at or below 10%
5. BNR reporting: up to date under the microfinance law
6. Tax clearance: a valid RRA tax clearance certificate

Our view: Institutions approaching the end of their five-year holiday should test themselves against all six conditions now, as some (branch footprint and dividend history) cannot be fixed quickly.

6. Tax residence and place of effective management (Order 009)

Article 4 of the Income Tax Law treats an entity as resident in Rwanda if it is incorporated here or has its place of effective management here. Order 009 defines both permanent residence and place of effective management.

• Individuals: permanent residence is where the individual usually stays in Rwanda.
• Entities: the place of effective management is in Rwanda if any one of the following applies:
  1. day-to-day management is carried out in Rwanda;
  2. shareholders' meetings are held in Rwanda;
  3. books of accounts are kept in Rwanda; or
  4. the main shareholders or directors live in Rwanda.

Our view: These tests are broad, and meeting just one is enough. Foreign-incorporated entities with Rwanda-resident directors, or with their books kept in Rwanda, may now be Rwandan tax residents. Groups should review where management actually takes place and document it.

7. Certified financial statements: the FRW 1 billion test (Order 009)

Annual income tax returns are due by 31 March, accompanied by financial statements. Above a turnover threshold set by Ministerial Order, those statements must be certified by an RRA-approved professional. Order 009 raises the threshold to FRW 1 billion, up from FRW 600 million. The Commissioner General will set how professionals are approved.

The following businesses are exempt unless their income exceeds the threshold: distributors of beer, soft drinks, juice and cement; petroleum dealers; forex bureaus; air ticket dealers and tour operators; farming and livestock cooperatives; and independent agents.

Our view: Businesses with turnover between FRW 600 million and FRW 1 billion no longer need certified statements. Those above the new threshold should appoint an approved professional in good time for FY2026 returns, due by 31 March 2027.

What should taxpayers do now?

The author is an Associate, Strategy and Transactions at Andersen, a tax, legal, and business advisory firm in Rwanda.