Hundreds queue to beat profit tax deadline

Rwanda Revenue Authority (RRA) officials were overwhelmed when 60 percent of the total tax-paying population turned up to pay profit tax yesterday. The annual deadline for payment is June 30. Several tax payers started queuing at the Authority’s headquarters as early as 6 a.m. By the time The New Times visited the headquarters at 9:52 a.m., very long queues had started forming. “I came here at 6:30 a.m. However I have not been served yet. My business has come to a standstill,” Joachim Ngirimana complained. RRA staff might have worked longer hours as it appeared that many taxpayers were still joining the extremely long queues by midday. Celestin Bumbakare, the Commissioner for Domestic Taxes said that the number of taxpayers had increased tremendously compared to last year. “There are no statistics yet but my estimate is that the profit taxes have increased by 40 percent because the business sector has continuously grown since 2007,” he added. According to RRA management, taxpayers had a long period of tax declaration and payment since January 1 this year until yesterday. This implies that anyone who did not clear profit tax by the end of yesterday would be penalised. “Late payment penalties include Frw100, 000 for small taxpayers, Frw300, 000 for medium and Frw500, 000 for top payers,” Bumbakare added. When interviewed, a cross-section of taxpayers said they pay profit tax on the deadline because they prefer that the money first generates more profits before it is remitted to the government treasury. Others are still not well versed with the taxation policy. While a big number is aware of their taxation category, many are still confused as to whether they fall under the real regime (large tax payers) or presumption regime (medium and small tax payers) of tax payment. This has contributed to delayed clearance as some complained that they had to go back and rectify their books of accounts. RRA management, however, maintains that taxpayers with a turnover of Frw20 million and above, clear profit tax in the real regime, while the presumption regime consists of those with a turnover of less than Frw20million. Lilian Uwizera, another taxpayer said: “There is no reason for me to rush and pay earlier. After all I can beat the deadline.” As for Paul Mugisha, he said that due to the constant absence of his boss, delayed authorisation and signatures of necessary documentation leads to late profit tax payment. Ends

National

Hundreds queue to beat profit tax deadline