Rwanda Revenue Authority (RRA) has reminded taxpayers who have yet to declare their second income tax quarterly prepayment to do so early, cautioning against last-minute filing, which could lead to penalties for late submission and payment.

This prepayment is calculated based on sales from April, May, and June 2024. To calculate it, the taxpayer starts with the tax paid for the previous annual tax period divided by the turnover of the same tax period, multiplied by the current quarterly turnover.

Emmy Mbera, Assistant Commissioner in charge of the Tax Control and Operational Support Division, emphasised that anyone who filed income tax last year is required to declare this second quarterly prepayment, just as they did for the first.

"If the taxpayer didn’t file for that quarter, they must now do so to be able to declare the second quarter. Anyone who didn’t declare income tax for 2023, whether due to technical or non-technical reasons, must also file to declare both advances,” he added.

"Remaining silent is not a solution. It simply means penalties and interest for late payment will accumulate. Some may believe it’s over just because they haven’t been contacted or audited, but that’s far from the truth.”

Mbera encouraged taxpayers to file early to avoid potential technical issues that could delay the process.

"That’s why we urge people not to wait until the last day. A system is just a system—it can work smoothly, but when tens or hundreds of thousands try to access it at the same time, it may slow down,” he emphasised.

Large and medium taxpayers can use the E-Tax platform through the RRA website, while small taxpayers can dial *800# and follow the instructions.

Taxpayers urged to embrace EBM usage

Assistant Commissioner Mbera also highlighted an ongoing campaign encouraging businesses to consistently use the Electronic Invoicing System (EBM) to issue valid receipts. This system, initially applied only to businesses registered for Value Added Tax (VAT), now covers all businesses.

"We remind businesses that issuing EBM receipts is mandatory. Failure to do so results in penalties. If a non-VAT-registered business fails to issue an EBM receipt, we double the value of the transaction. For instance, if they sell goods worth Rwf 30,000, we fine them Rwf 60,000. For VAT-registered businesses, the penalty can be 10 to 20 times the VAT amount for repeat offenses,” Mbera stressed.

He noted that RRA focuses on educating businesses so that those who may not fully understand the regulations receive adequate information, making penalties a last resort.

To encourage consumers to request EBM receipts, government offers a 10 per cent reward on the VAT amount shown on the EBM receipt. If the receipt is withheld or incorrect, and the consumer reports this to the RRA, they receive 50 per cent of the fine imposed on the business. To register for this reward, consumers can dial *800#.

Mbera also urged taxpayers with undeclared taxes before 2023 to come forward voluntarily and pay only the principal tax without penalties and late payment interests.

This opportunity is available until October 23, 2024. After that, if a taxpayer is caught, they will have to pay the tax, along with penalties and interests for late declaration and payment.