Rwanda Revenue Authority (RRA) has called on income-generating individuals and businesses to declare and pay the first Income Quarterly Prepayment (IQP) tax for 2025 early, to ensure timely support for those who may need assistance. This prepayment tax is based on sales made in January, February, and March 2025. The IQP amount is calculated from the tax paid for the previous year divided by the turnover of that same year, then multiplied by the turnover for the current quarter. Jean-Paulin Uwitonze, Assistant Commissioner for Taxpayer Services and Communications at RRA, explained that this obligation applies to anyone who made a profit in 2024 and declared their income tax by March 2025. Those who submitted zero-income returns are exempt. It also applies to individuals who registered a business in 2024 and filed their first income tax declaration in March 2025. “This means they must declare no later than June 30, clearly indicating their operations during the first three months of this year,” Uwitonze added. Taxpayers who have not yet declared their income tax for 2024 are reminded that the system does not accept a new declaration unless the initial return has been submitted. They are therefore urged to file any overdue declarations. “If you have not declared last year’s income tax, please do so. Secondly, some people filed incorrect returns. We have seen cases where taxpayers inflate business costs with unsupported expenses just to reduce their taxable profit,” he said. “We advise taxpayers to voluntarily correct such declarations and pay any outstanding taxes to avoid audits or penalties. Those unable to pay in full may request to settle their tax obligations in installments. Interest and penalties increase over time, so early action is to your benefit.” Traders are also encouraged to work with trusted tax agents when filing returns. Uwitonze cautioned that some agents have submitted false zero-income declarations while charging clients as if taxes had been paid, leaving the clients to face penalties. Elise Mireille Ikuzo, the CEO of Blue Kite Trading and Services Ltd, emphasized the importance of early preparation to meet the June 30 deadline for declaration and payment of IQP1. “For example, we know we must pay before June 30, so we are preparing in advance to avoid penalties,” she said. “I encourage my fellow traders and all income-generating individuals to prepare early and set aside funds to meet their tax obligations on time.” Uwitonze also reminded traders to issue EBM invoices, as these make it easier to track sales and accurately determine taxes. Tax declarations can be submitted through the RRA website (www.rra.gov.rw). Small business operators under the simplified tax regime can dial *800# and follow the instructions. Payments can be made via Mobile Money, MobiCash, mobile banking, or Internet Banking.
