RRA sensitises contractors on taxation issues

It will now be easy for construction sector taxpayers to file returns, thanks to last week’s training programme on tax matters that targeted industry players.

Monday, January 26, 2015

It will now be easy for construction sector taxpayers to file returns, thanks to last week’s training programme on tax matters that targeted industry players.

The one-day workshop, organised by the Rwanda Revenue Authority (RAA), attracted more than 200 construction industry stakeholders.

Vincent Mucyurabuhoro, the head of RRA large taxpayers department, said most sector players do not understand which taxes to pay, especially when it comes to corporate tax and Value Added Tax (VAT).

Mucyurabuhoro added that this and other challenges often cause delays in tax remission.

He said there is also need to address late declaration of invoices for corporate tax, and VAT claims on exempted items.

According to Alfred Ndihokubwayo, the head of the audit division at RRA, the revenue body is seeking ways to work with stakeholders in the construction sector to ensure tax compliance and discipline.

Working together as a team is the only way we can address challenges and increase revenue collections to accelerate the country growth,” Ndihokubwayo noted.

Vedaste Rutaganda, the executive secretary of the Association of Construction Entrepreneurs, said there is a need to sensitise industry players about the new technologies RRA is using to ease tax collection and administration.

The tax body has in the past three years or so introduced electronic billing and payment systems to make it easier for taxpayers to file their returns, among other things.

"While the new system seeks to enhance efficiency, it’s important for RRA to educate the masses, including contractors, on how to use it so that they embrace it and file tax returns without any hindrances,” Rutaganda said.

He also called on the tax body to give construction sector players, especially small-and medium-enterprises (SMEs), more tax incentives as one of the ways to support them to grow.