In August, Rwanda Revenue Authority waived penalties, fines and interests of payment worth Rwf5 billion for taxpayers who were unable to pay because of the Covid-19 pandemic.
The penalties accrued are from late payment of some taxes for the period of March, April and May.
The statement, which was signed by the Minister for Finance and Economic Planning, Dr Uzziel Ndagijimana, noted that after September 30, taxpayers who will not have paid the principal tax in full will be liable to interests applied to unpaid principal amount, effective October 1, 2020.
The taxpayers, who were exempted from paying penalties, fines and interests of late payment of Pay As You Earn (PAYE), Value Added Tax (VAT), Withholding Tax (WHT) for the months of March, April and May 2020; as well as Corporate Income Tax for 2019, hence are requested to pay the principal tax due along with the quarterly income tax by September 30.
According to the tax procedure law, any taxpayer who fails to fulfill their tax obligations which include filing and paying in accordance to the tax calendar is subject to penalties, fines and interests for late payment.
Based on the fact that Covid-19 crippled business operations thus affecting cash flow and liquidity; in addition, Rwanda underwent total lockdown from late March, April and some days of May 2020 and yet the tax types mentioned above were due during this period.
During the live session held on RRA Twitter account, the Commissioner General Pascal Bizimana Ruganintwali encouraged taxpayers who got the waiver to pay their principal tax due by September 30.
The tax body also reminds taxpayers that the deadline for filing and paying the 2nd Quarterly Income Tax Prepayment is also September 30, and will be computed based on the transactions of the current year.
Rwanda Revenue Authority also calls upon taxpayers to constantly check their tax calendar in order to avoid late fulfilment of their obligations which risk penalties.
According to the calendar, taxpayers registered under quarterly payment of VAT as well as monthly, Pay As You Earn and withholding Tax are due to pay not later than September 15.