|Tax deductions or other allowances
As explained in article 4 of law nš 43/2002 of 31/12/2002, the following have been added on to the list of exemption:
a) Pensions, Guarantees, income and allowances given according to laws on pensions, compensations to incapacity caused by work related accidents or due to death, pensions to the incapacitated, widows, orphans and parents of soldiers who die on the battle field, victims of accidents due to work, sickness while on duty and congenial deformity and food allowance.
b) Diplomats and diplomatic staff, consuls and consular staff accredited to Rwanda, high ranking executives of international organisations, as per legal taxation and customs provisions relating to diplomatic exemptions as well as persons or companies exempted as per special agreements ratified according to Rwandan law.
c) Medical expenses incurred by the employee or his/her legally accepted dependents which are reimbursed by the employer. For this exemption to be effective, it is important that the taxpayer provide sufficient proof to indicate that the said expenses was in fact incurred on treatment. The percentage, which the employer contributes to assist his employee in medical insurance, is determined after deducting tax due.
d) Meals or refreshments provided by the employer to the employee in the premises operated by the employer or any other person who is appointed by the employer to do so, for the benefits of all employees and which are availed to all full time employees on equal basis.
e) Expenses incurred by the employer on staff training.
f) Refundable travel expenses incurred on work missions. It therefore differs from the allowance given to an employee to facilitate his movements to and fro work. The latter is taxed.
g) Mission allowances.