Japan vs Rwanda
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฏ๐ต Japan โ Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ็จ) at a flat 10% on top of national income tax โ 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
๐ท๐ผ Rwanda โ District & Local Government Taxes
Rwanda's 30 districts (akarere) each have local tax collection powers. The Rwanda Revenue Authority (RRA) administers national taxes with high efficiency โ Rwanda is consistently ranked highly for tax administration in Africa. Local taxes include market fees, business development taxes, and immovable property taxes. Districts receive grants and shared revenues from the national government. Rwanda has pursued aggressive economic development and tax reform as part of Vision 2050. E-invoicing (EBM machines) is mandatory for VAT-registered businesses.
Japan vs Rwanda: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฏ๐ต Japan has a higher top income tax rate (5โ45% vs 0โ30%). ๐ท๐ผ Rwanda is more favourable for high earners.
๐ VAT/Sales Tax: Rwanda has a higher consumption tax (8โ10% vs 18%).
๐ข Corporate Tax: ๐ท๐ผ Rwanda offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.
๐ Capital Gains: ๐ฏ๐ต Japan taxes investment gains at a lower rate (20.315% vs 30%), benefiting investors.