Rwanda’s new rules allow eligible deposit-taking microfinance institutions to extend their 0% corporate income tax rate for five years, subject to six operational, financial and regulatory conditions and formal approval.
Rwanda has published Ministerial Order No. 008/26/10/TC of 24 September 2026, establishing the statutory conditions under which approved deposit-taking microfinance institutions (MFIs) can extend their 0% corporate income tax (CIT) rate. The order was published in the Official Gazette on 25 September 2026 and entered into force on the same date.
Under the foundational tax framework, an approved deposit-taking MFI pays corporate income tax at a 0% rate for an initial 5-year period starting from its official date of approval. The new Order provides that this tax holiday may be renewed once for an additional 5 years, provided the institution satisfies six cumulative operational, financial, and regulatory benchmarks.
The six statutory conditions for extension
To qualify for the 5-year extension of the 0% CIT rate, a deposit-taking MFI must fulfil all of the following requirements:
- Regional expansion outside Kigali: Operate at least 5 branches outside the City of Kigali located in different districts.
- Simplified digital lending & savings: Grant loans through simplified digital lending to clients across more than 5 districts while actively receiving savings.
- Dividend distribution ban: Refrain from distributing dividends to shareholders from the date the initial 0% tax holiday was granted.
- Loan portfolio quality: Maintain non-performing loans (NPLs) at a threshold not exceeding 10%.
- Regulatory reporting: Regularly report to the National Bank of Rwanda (BNR) in compliance with the governing microfinance laws.
- Tax clearance: Possess a valid tax clearance certificate issued by the tax administration.
Application procedure and approval process
The extension is not automatic. Deposit-taking MFIs must submit a written application to the tax administration, which consults the National Bank of Rwanda. If all six conditions are jointly confirmed, the tax administration issues written approval granting the five-year CIT extension.
Strategic objectives & sector impact
The Order aims to promote financial inclusion by expanding access to credit beyond Kigali through physical branches and digital lending. It also supports financial stability by capping non-performing loans at 10% and restricting dividends to help preserve capital and manage lending risks.
