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Rwanda vs Japan
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇷🇼 Rwanda
vs
🇯🇵 Japan
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–30%
30% top; tech and services hub ambitions
No change
5–45%
Basic deduction increase for low earners
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
18%
18% maintained; leading African compliance
No change
8–10%
No rate change; digital services tax under review
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30%; Pillar Two for MNCs; Kigali IFC growing
No change
~30.62%
Global Minimum Tax applies to large MNCs
No change

Capital Gains Tax

Capital Gains Tax
5–30%
5% securities; 30% other
No change
20.315%
Expanded NISA (tax-free investment) ongoing
No change

Social Security & Payroll

Social Security / Payroll
~8%
RSSB reform; universal health insurance model
No change
~28.5%
Coverage expansion to part-time workers ongoing
No change
State, Regional & Local Taxes

🇷🇼 RwandaDistrict & 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 — 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.

🇯🇵 JapanPrefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 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.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Rwanda vs Japan: Key Tax Differences (2026)

💰 Income Tax: 🇯🇵 Japan has a higher top income tax rate (0–30% vs 5–45%). 🇷🇼 Rwanda is more favourable for high earners.

🛒 VAT/Sales Tax: Rwanda has a higher consumption tax (18% vs 8–10%).

🏢 Corporate Tax: 🇷🇼 Rwanda offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.

📈 Capital Gains: 🇯🇵 Japan taxes investment gains at a lower rate (20.315% vs 30%), benefiting investors.

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