Rwanda Revenue Authority (RRA) has issued a reminder to all taxpayers with Income Tax Quarterly Prepayment (IQP) obligations for Quarter two to complete their filings and payments before the September 30 deadline.
By doing so, taxpayers can avoid last-minute congestion and potential penalties for failing to meet the deadline.
The Income Tax Quarterly Prepayment currently due represents an advance payment toward the 2023 income tax. This payment is calculated based on the income generated during the months of April, June, and July.
By fulfilling this tax obligation, businesses that benefit from Rwanda's infrastructure, security, and overall prosperity contribute their fair share to the nation's development.
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Similar to other taxes, taxpayers can declare their Income Tax Quarterly Prepayment through the RRA website or via mobile phone.
Jean Paulin Uwitonze, Assistant Commissioner in charge of Taxpayer Services and Communications Division, emphasized the importance of early tax payment, stating: "The taxes for the second quarter are declared not later than September 30. Sometimes taxpayers tend to wait until the last moment.
That is why we encourage them to pay the taxes before the deadline approaches to avoid congestion at the end of the month. When they fulfil their tax obligations earlier, they can easily get assistance in case of complications."
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How to calculate your Income Tax Quarterly Prepayment (IQP)
Calculating the Income Tax Quarterly Prepayment (IQP) follows the provisions of Law nº 051/2023 of 05/09/2023, which amends Law nº 027/2022 of 20/10/2022, establishing taxes on income.
The second advance income tax must be declared and paid before September 30 of the calendar year related to the taxable business activity.
For accountants, the tax calculation excludes taxes collected during that quarter, except for income not included in the taxable income.
Taxpayers with vehicles used for transportation purposes calculate the vehicle tax based on the number of passengers or the tonnage the vehicle is designed to carry.
How to declare and pay your taxes
To declare and pay taxes, taxpayers can visit the RRA website at https://etax.rra.gov.rw/, where they can log in with their TIN and password.
Alternatively, they can dial *800# on their mobile phones and follow the prompts. Payment options include Mobile Money, MobiCash, e-banking, or visiting nearby commercial banks. According to RRA early compliance with tax obligations ensures a smoother process and better access to support if needed.