Taxpayers subject to the declaration and payment of the first quarterly income tax prepayment are urged to fulfil their obligations before the June 28 deadline to avoid potential penalties that could impact their businesses.
The ongoing prepayment is based on sales made in January, February, and March 2024.
Hajara Batamuliza, Commissioner for Domestic Taxes at RRA, explained that all individuals who earned profits or registered a business in 2023 and declared income tax for the first time in March 2024 are subject to this quarterly prepayment.
"When we talk about profitable and taxable activities, there is no exclusivity. All individuals, including those who own vehicles such as motorcycles, trucks, taxis, or buses and are engaged in transporting people and goods as a profitable activity, are subject to this tax prepayment,” she said.
"There are other sectors, such as businesses with diversified operations, service providers, and banks. All activities conducted in Rwanda, where a person received taxable income,” she added.
For taxpayers under the real regime, you can make a declaration via the RRA website (www.rra.gov.rw). Click on "Declare Domestic Taxes”, fill in your TIN and password, and fill in the annexures if you have withholding taxes.
Click on "Tax Declaration”, then on "New Declaration”, and search for First Quarterly Prepayment. On the declaration form, click on the declaration number. Click on "Enter Declaration” and fill in the required information on the declaration form, click "Compare with the Declaration”, then submit your declaration.
Micro-enterprises under the flat regime can declare their taxes by dialing *800#. Payments are made using mobile banking, Mobile Money, MobiCash, or Internet Banking.
According to the Law establishing taxes on income, taxpayers must declare and pay a quarterly prepayment tax to the account of the Tax Administration by June 30, September 30, and December 31 of the year of taxable business activities.
However, Article 8 of Law No. 020/2023 of March 31, 2023, on tax procedures, specifies that if a deadline falls on a public holiday or a weekend, the deadline is moved to the last working day prior to the holiday or weekend. This is the case for this month.
"Taxpayers should be aware that the deadline is June 28. Our staff are ready to help taxpayers at all our offices across the country. I urge them not to wait until the 28th but to come earlier so we can assist them. Once they come late, it becomes difficult,” Commissioner Batamuliza added.
Waiting until the last day can also lead to technological difficulties, which may result in late declarations and associated penalties.
Article 82 of the law on tax procedures provides that a taxpayer who fails to declare and pay tax within the time limit provided by law pays such tax and is liable to an administrative fine of 20% of the due tax if the time limit for payment extends for a period not exceeding 30 days; 40% for a period ranging from the 31st to the 60th day; and 60% of the due tax if the taxpayer exceeds the time limit for payment by more than 60 days.
A taxpayer who declares tax due within the time limit provided by law but does not pay that tax in the prescribed time limit pays the principal tax and an administrative fine of 5% of the due principal tax for a delay not exceeding 30 days; 10% for a period ranging from the 31st to the 60th day; and 30% if the taxpayer exceeds the time limit by more than 60 days.