Rwanda Introduces 5% Reward for Tax Evasion Whistleblowers
A new ministerial order offers financial incentives for citizens reporting tax evasion, with rewards capped at Rwf10 million.
A new ministerial order offers financial incentives for citizens reporting tax evasion, with rewards capped at Rwf10 million.
· Updated
The Rwanda Revenue Authority (RRA) will now reward individuals who report tax evasion with 5% of the principal tax recovered, up to a maximum of Rwf10 million. This measure, detailed in a ministerial order signed on September 24, 2026, aims to enhance tax compliance and broaden the country's tax base.
The reward is calculated based on the actual principal tax recovered, excluding late payment interest and administrative penalties. For instance, if Rwf100 million in principal tax is recovered, the whistleblower receives Rwf5 million. If the recovered amount exceeds Rwf200 million, the reward is capped at the maximum of Rwf10 million.
Payment of the reward is contingent upon the conclusion of any administrative appeal procedures initiated by the taxpayer. If a taxpayer challenges a tax assessment, the whistleblower must wait until that process is finalized before receiving their reward. However, if no administrative appeal is filed, the payment is not subject to such a delay.
The responsibility for disbursing these rewards lies with the RRA, not directly with the Ministry of Finance and Economic Planning. This initiative complements existing measures designed to improve tax collection, including previous reforms that offered rewards related to Value Added Tax invoices.
FAQ
What is the maximum reward for reporting tax evasion in Rwanda?
The maximum reward for reporting tax evasion in Rwanda is Rwf10 million.
When is the whistleblower reward paid?
The reward is paid after the administrative appeal procedure has been concluded, if such a procedure applies.
