The Rwandan government has introduced a new measure to encourage citizens to report tax evasion. According to a ministerial order signed by the Minister of Finance and Economic Planning on September 24, 2026, individuals who report tax evasion cases will receive a reward equal to 5% of the principal tax recovered by the Rwanda Revenue Authority. This move aims to improve tax compliance and broaden the tax base.
The reward, capped at Rwf10 million, will be calculated based on the actual principal tax recovered by the tax administration. This means that interest charged for late payment and administrative penalties are not included in the calculation. For instance, if a taxpayer is found to have evaded Rwf100 million in principal tax and that entire amount is recovered, the whistleblower will receive Rwf5 million.
The payment of the reward will not be immediate, as it will be made after the administrative appeal procedure has been concluded, where such a procedure applies. If the taxpayer challenges the tax assessment through the administrative appeal process, the whistleblower will have to wait until that process is completed. The provision does not specify whether a subsequent court case would delay payment after the administrative appeal process has ended.
The Rwanda Revenue Authority, not the Treasury, will be responsible for paying the reward. The reward is linked to money actually recovered, meaning a tax assessment by itself is not enough to establish the amount of the reward. The relevant figure is the principal tax that has actually been recovered.
This new measure is part of a broader effort to improve tax compliance and increase domestic revenue. The Ministry of Finance and Economic Planning has previously stated that tax reforms aim to broaden the tax base, improve compliance, and curb tax evasion. By creating a financial incentive for people outside the tax administration to report suspected cases, the government hopes to increase its revenue.
The effectiveness of the system will depend on how the Rwanda Revenue Authority defines reporting procedures, verifies information supplied by whistleblowers, and determines whether a report directly contributed to a tax recovery. This measure complements earlier reforms that introduced rewards linked to Value Added Tax invoices.
The whistleblower provision adds another layer to Rwanda's approach to tax compliance, shifting the responsibility from tax officials alone to include members of the public. With this new incentive, the government aims to encourage citizens to play an active role in identifying unpaid taxes and reporting tax evasion cases.
Key points
- Whistleblowers in Rwanda can receive up to Rwf10 million for reporting tax evasion cases.
- The reward is calculated as 5% of the principal tax recovered.
- Payment will be made after the administrative appeal procedure has been concluded.
