Failure to Withhold Tax

A withholding agent who fails to withhold tax in accordance with law 25/2005 is personally liable to pay to the Tax Administration, as provided for by paragraph 2, Article 48 of this law, the amount of tax which has not been withheld including penalties and interest on arrears. However, the agent is entitled to recover this amount from the payee excluding the associated fines and the interest on arrears.

The collection liability of tax mentioned in this Article is treated in the same manner as other liabilities for the purpose of the right of the taxpayer not to accept the amount of the tax imposed or to recover any excess amount withheld and paid.

Records of Payments and Tax Withheld

• A withholding agent maintains and makes available for inspection, by the Tax Administration in relation to each tax period, records showing:
• 1° payments made to taxpayer;
• 2° amount of tax withheld and paid.
• A person who pays withholding taxes shall keep the records referred to in paragraph one of this Article for a period of ten (10) years tax after the end of the tax period to which the records relate.
• The Commissioner General may require a withholding agent to provide a copy of records that is supposed to be kept in accordance with paragraph one of this Article.

Fixed amount of fines

• A taxpayer or any person is subject to a fine if he or she fails to:
• ° file a tax declaration on time;
• 2° file a withholding declaration on time;
• 3° withhold tax;
• 4° provide proofs required by the Tax Administration;
• 5° cooperate with a tax audit;
• 6° communicate on time the capacity or appointment he or she has been given as described by article 7 paragraph 2;
• 7° register as described by article 10;
• 8° comply with articles 12, 13 and 15 of this Law; or
• 9° pay on time the profit tax advance.


• Fines related to violations of provisions of paragraph one of this article are set as follows:
• 1° one hundred thousand (100,000) Rwanda francs if the taxpayer’s annual turnover is equal to or less than twenty million (20,000,000) RWF; or
• 2° three hundred thousand (300,000) Rwanda francs if the taxpayer’s annual turnover exceeds twenty million (20,000,000) Rwanda francs; or
• 3° five hundred thousand (500,000) Rwanda francs if the taxpayer was informed by the Tax Administration that he or she is in a large taxpayer category.
• In case the same violation is committed twice within five (5) years, the fine is twice the original fine. In case the same violation is committed again within such five (5) years, the fine is four times the original fine.