Rwanda’s Tourism Sector: What You Need to Know About the New 3% Tourism Tax

In an effort to strengthen domestic revenue and support the sustainable growth of the hospitality industry, Rwanda introduced a 3% tourism tax on accommodation through Law nº 015/2025, published in the Official Gazette on May 29, 2025. This bold move is part of the country’s broader National Strategy for Transformation (NST2), which prioritizes economic resilience and public service financing.

If you own or manage a hotel, guesthouse, or short-term rental property in Rwanda, this new law directly affects you and understanding it is crucial for compliance and business continuity.


What is the Tourism Tax?

The tourism tax is levied at 3% on the value of accommodation services rendered, excluding VAT. Whether your property is a five-star resort, a budget-friendly inn, or an Airbnb unit, you are required to comply.

Key characteristics:
  • Tax rate: 3%
  • Tax base: Total accommodation amount (excluding VAT)
  • Applies to: All hospitality service providers

Step-by-Step Guide

Why Was the Tourism Tax Introduced?

The tourism tax is more than a revenue tool—it’s a catalyst for sustainable development.

Goals of the tax include:
  • Expanding Rwanda’s tax base without overburdening SMEs

  • Supporting national tourism infrastructure and marketing initiatives

  • Enhancing data-driven tourism policy making through formalized records


➡️ This measure aligns with the RWF 7 trillion national budget envelope for FY2025/26, which aims to raise over RWF 3.6 trillion through tax and non-tax revenue.

    What It Means for Hospitality Businesses

    For operators in the hospitality space, this tax means:

    • Monthly reporting and filing requirements through the RRA E-Tax system

    • Need for clear record-keeping and digital billing systems

    • Increased accountability in pricing and invoicing


    It also opens opportunities to formalize operations, access support programs, and build trust with international travel platforms and investors.

    How ALSM Ltd Can Help

    At ALSM Ltd, we understand the financial and operational pressure that new regulations can bring—especially to hospitality businesses that may not have in-house tax experts.


    With a team of 55+ globally certified professionals (including CPA Rwanda, ACCA UK, and ICAI India), we provide:

    Our support includes:

  • Tourism Tax Registration & Filing
    • Ongoing Tax Advisory & Revenue Forecasting
    • Financial System Setup for Compliance
    • Digital Bookkeeping & Monthly Reporting

    Sunny MATETI

    Managing Partner


    Chartered Accountant and Certified Public Accountant, I excel in managing intricate tasks, adhering to strict deadlines, and providing outstanding results. My expertise is grounded in a solid 17+ years of experience in auditing, accounting, tax, and advisory services.

    Stay Compliant. Stay Competitive.


    Don’t let regulations slow down your hospitality business. ALSM Ltd is your trusted partner in Rwanda’s evolving tax landscape.

    Phone: +250 784 441 144
    Website: www.alsm.ltd