Rwanda Revenue Authority(RRA) has announced the deployment of dedicated support teams to assist taxpayers in the declaration of the third Income Tax Quarterly Prepayment (IQP) before the deadline.
This declaration and payment pertain to individuals registered under income tax, providing a more favorable option to pay taxes through installments instead of settling the complete sum at the end of the year.
The third IQP corresponds to the tax period covering July, August, and September 2023, and the declared amount is calculated based on the tax paid for the previous annual income tax period divided by the turnover of the same tax period, multiplied by the turnover of the taxable quarter. This amount is then adjusted by deducting tax withheld in that quarter, unless the taxable income is not subject to taxation.
ALSO READ: RRA recognises outstanding taxpayers in Southern Province
Jean-Paulin Uwitonze, Assistant Commissioner for Taxpayer Services and Communications, encourages taxpayers to fulfill their tax obligations earlier to avoid last-minute pressures. Data show that many business people have yet to declare or pay their taxes.
"We would like to remind taxpayers to submit their declarations and make payments well in advance of the deadline to prevent last-minute stress, which could lead to unintended errors and subsequent penalties. While some taxpayers may choose to wait until the last minute, it is crucial to complete all tasks before the deadline and to seek technical support from RRA or from the bank they work with when necessary," he said.
Uwitonze emphasized that for taxpayers requiring in-person support from both RRA and banks to declare or pay their third IQP in 2023, RRA has deployed dedicated support teams across all RRA offices to streamline the tax declaration process.
ALSO READ: RRA urges taxpayers to pay Second Income Tax Quarterly Prepayment ahead of deadline
Businesses commend quarterly prepayments as a model that ensures the sustainability of their operations. They emphasize the importance of early declaration and payment to avoid delays and associated penalties.
"We once unintentionally delayed declaration and payment and were fined. We learned that timeliness is essential, and I would like to encourage other business operators to prepare and submit their declarations ahead of time to avoid a similar fate. Paying our taxes on time enhances our country&039;s development and the well-being of every Rwandan," said a mini-supermarket owner in Kicukiro district.
She has opted to hire a private accountant to assist in verifying her business records. By aligning her records, she consistently submits her declarations punctually.
Business owners note that quarterly prepayments have been beneficial as they provide enough time to prepare required documents, unlike paying the whole sum at the end of every month or annual tax period.
To declare this tax, visit our website at www.rra.gov.rw or use your mobile telephone by dialing *800# for taxpayers registered under the flat regime. Payment can be made electronically using Mobile Money, Mobile Banking, Internet Banking, MobiCash, or by visiting the nearest bank.