Rwanda Revenue Authority (RRA) has opened the declaration process for the 2024 immovable property tax, encouraging concerned taxpayers to declare and pay early, rather than waiting for the December 31, 2024, deadline.

On August 20, 2024, RRA announced that following approval by the District Councils and the City of Kigali, the rates have been integrated into the tax declaration system.

When determining these rates for land without any construction, key factors considered include the size of the land, its location (urban or rural), its designated use, and the available infrastructure and must range between Rwf 0-80 per square metre.

For developed land, the law provides fixed rates based on the market value of the building and the land, depending on its intended use.

Ernest Karasira, Assistant Commissioner in charge of Provincial and Decentralized Revenue Division, mentioned that since the tax rates have been determined early, taxpayers should declare and pay their taxes without waiting until the last minute.

"The four months we have is not a long time, but it’s also not too short. If you can’t pay now, you can at least declare. The important thing is not to exceed the December 31 deadline without paying. We often see that early declarations prevent issues, ensuring the system runs smoothly without problems,” he added.

Waiting for the last minute to declare taxes causes different hardships, which could also result in the taxpayer facing penalties for late payments.

Besides the tax rates set by each district, the law stipulates a tax of 0.5% of the market value for residential buildings and plots; 0.3% for commercial buildings and plots; and 0.1% for industrial buildings and plots, as well as buildings and plots for small and medium-sized enterprises.

Exemptions from property tax include one building intended by the owner to be occupied as his or her dwelling and its annex buildings located in a residential plot for one family. That building remains considered as his or her dwelling even when he/she does not occupy it for various reasons. However, the land is still subject to tax.

They also apply to land reserved for construction of residential houses but where no basic infrastructure has been erected; and plots of land on which a condominium is built or meant for construction of a condominium or intended for a shared building in a co-ownership arrangement.

RRA urges taxpayers to start declaring early so that by the deadline, all payments are completed.