The Rwanda Revenue Authority (RRA) has clarified that no new taxes are being introduced on wedding service providers, addressing confusion that has circulated in recent days.
In a statement issued on Tuesday, April 15, the tax body indicated that there are no new taxation requirements for those offering such services.
The clarification follows the circulation of an RRA-issued form requesting information about wedding venues. The form seeks details such as the names, telephone numbers, and taxpayer identification numbers (TIN) of individuals or businesses providing paid services related to weddings – namely decoration, catering (food and drinks), entertainment, and sound systems at weddings.
According to RRA, the form aims to collect accurate information on wedding service providers in line with tax transparency efforts and compliance with existing legislation, including business registration requirements.
Based on the information being shared on social media, RRA stated it wishes to clarify that requests for information about paid wedding services are not new, but rather are part of efforts to ensure that individuals earning income from such services are registered and tax-compliant.
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Jean-Paulin Uwitonze, Assistant Commissioner for Taxpayer Services and Communications at RRA, said that anyone engaging in income-generating activities must register with the tax authority and issue electronic invoices through the EBM (Electronic Billing Machine) system.
"This form has been in use between RRA and those operating in this sector. It does not introduce a new tax,” Uwitonze said. "Its purpose is to identify those not yet registered so that they do, and ensure those who do not pay the due tax, fulfill their tax obligations.”
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According to information from RRA, unpaid or voluntary wedding services are not subject to tax. For example, if a family member serves as the master of ceremonies (MC) at a wedding without compensation, that activity is not taxable. However, if a professional MC is hired and paid, their services are considered taxable income.
Similarly, when a hotel or hall is paid to host a wedding and provide food and drinks, that income is taxable as part of the venue’s business operations.
The same applies to entertainment: if a troupe is paid to perform at a wedding, their services are taxed; unpaid performances by friends or family are not.
RRA specified that wedding service providers are subject to existing tax laws based on the nature and amount of income they generate. For example, companies must pay a 28 per cent corporate income tax on their profits, while individuals are taxed according to the personal income tax brackets established by law.
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The 2022 income tax law outlines various taxable income sources, including employment, freelance services, artistic performances, and leisure or cultural activities conducted in Rwanda or abroad by Rwandan residents.
Individuals earning up to Rwf60,000 per month (Rwf720,000 annually) are exempt from personal income tax. Those earning above this threshold are taxed progressively: 10 per cent on income up to Rwf1.2 million annually, 20 per cent up to Rwf2.4 million, and 30 per cent on income above that.
Casual labourers are subject to a flat 15 per cent tax, although income below Rwf60,000 per month remains exempt.
In a previous session held on March 25, RRA Commissioner General Ronald Niwenshuti told the parliamentary Committee on State Budget and Patrimony that wedding service providers are already taxable under existing laws. He expressed concern, however, that many operate informally, complicating tax enforcement.