As the declaration for 2022 income tax returns is underway, Rwanda Revenue Authority (RRA) has reminded taxpayers of the notable changes that have been made in the income tax declaration procedures, ahead of the deadline slated for March 31. One of the changes that taxpayers, more particularly those who file in the real regime need to take note of is that 27 per cent of deductible expenses that are not supported by EBM receipts, DMC (Déclaration de la Mise en Consomation), or Withholding tax will no longer be allowed while declaring income tax for 2022. The tax administration has introduced a new annexure called the Ledger account that will be filled with detailed information related to all deductible expenses for 2022, from entities exempted from using EBM like government institutions and banks. While addressing the Media, the Assistant Commissioner for Taxpayer Services and RRA spokesperson, Jean Paulin Uwitonze, said: “The only expenses accepted in the leger account will be those resulting from transactions with entities exempted from using EBM.” Also, taxpayers who fill out transfer pricing or related party transactions are required to submit what is known as the country-by-country report. This must be submitted within 12 months, from the last day of declaration for the multinational company. The report has also been added to the list of annexes required during the 2022 income tax declaration. On the other hand, taxpayers who have entered into partnerships with other business ventures are required to submit their financial statements and disclose their partners’ income under the “Entities exempted from CIT” menu. This requirement is still applicable even when those entities are exempted from corporate income tax. Uwitonze stated that taxpayers’ facilitators in the tax filing process must also be disclosed on the declaration form. “The tax administration has issued identifier numbers to tax advisors, and provided a specific place where they are filled during the declaration process.” Another change to take into consideration is that taxpayers whose annual turnover of over Rwf600million shall be obliged to have their annual tax declarations and financial statements certified by a qualified firm and approved by the Tax Administration. The name and TIN of the firm that certified financials will also be disclosed on the declaration form. The tax collector urges taxpayers to take advantage of the remaining days to adjust to the changes earlier enough, in a bid to avoid any mistakes. “As taxpayers continue to adjust to the new changes, we want to remind them to not wait till the last day to file their taxes. From January to March, the three months’ period has been given to them, to get to know the new changes and take necessary steps to file and declare their taxes due as smoothly as they can, to avoid any last-time mistakes”, said Uwitonze. “The payment process is not a laborious ordeal anymore, since one can pay electronically at the ease of their choice via various mediums including Internet Banking, E-Payment, MTN Mobile Money or Mobicash,” he added.
