Real regime.

Taxpayers who are under real regime are those whose annual turnover is 20 million RWF and above.

Changes in income tax for those who file in real regime

• The system demands the filer to upload the Ledger account justifying the entered figure if the taxpayer frequently enters amounts that are higher or lower than necessary.
• If you had transfer pricing/ related party transactions, you must submit a country-by-country report which must be filed not later than 12 months.
• Starting from 2022 income tax real regime form, it is mandatory to disclose the identity of the person who assisted in the tax filing process on the declaration form.
• If your annual turnover is over FRW 600 million, you are obliged to have your annual tax declarations and financial statements certified by a qualified professional and approved by the Tax Administration.
• Partnerships must present their financial statements and reveal the revenue of their partners.

Learn how to declare income tax for those in real regime.

Click here to declare income tax for those in Real regime.

https://etax.rra.gov.rw/

Penalties

Wrongful acts punished with fixed administrative fine.

• Five hundred thousand Rwandan francs (FRW 500,000) if the taxpayer was informed by the Tax administration that he or she is in the category of large taxpayers.
• Five hundred thousand Rwandan francs (FRW 500,000) if taxpayer fails to submit his or her certified 4 annual tax declarations and financial statements as required by law; the fine is paid every month until he or she submits them.

Administrative fine for non-declaration and non-payment of tax on time.

• Twenty percent (20%) of due tax, when the taxpayer exceeds the time limit for declaration and payment for a period not exceeding thirty (30) days.
• Forty percent (40%) of tax the taxpayer should have declared and paid, if he or she pays within a period ranging from thirty-one (31) to sixty (60) days from the time limit for the payment.
• Sixty percent (60%) of due tax, if the taxpayer exceeds the time limit for declaration and payment by more than sixty (60) days.

The taxpayer who has declared due tax in the required time limits provided by law but did not pay that tax in such time limits, pays the principal tax and an administrative fine as follows:

• Ten percent (10%) of due principal tax, when the taxpayer exceeds the time limit for payment for a period not exceeding thirty (30) days from the fixed date of payment.
• twenty percent (20%) of the principal tax due, when the taxpayer exceeds the time limit for the payment of a period ranging from thirty-one (31)to sixty (60) days from the fixed date of payment.
• Thirty percent (30%) of due principal tax, when the taxpayer exceeds the time limit for payment by more than sixty (60) days from the fixed date of payment.

Laws

• When a person opts for the real regime, he/she must inform the tax administration and this decision is irrevocable for 3 years.