A taxpayer who fails to pay tax within the due date is required to pay interest on the amount of tax. Interest is calculated on a monthly basis at the inter-bank offered rate of the National Bank of Rwanda plus 2 (two) percentage points. For example if the inter-bank rate is 9%, interest is imposed at 11% annually.

Penalties

With regard to PAYE tax, a taxpayer is subject to penalty and fine when failing to:

1. file a tax declaration on time;
2. file a withholding declaration on time;
3. withhold tax;
4. reply to an information request of the Tax Administration;
5. cooperate with a tax audit;
6. communicate the capacity or appointment as described by Article 7 §2 of the Law on Tax Procedures;
7. register as described by Article 10 of the Law on Tax Procedures; or
8. Comply with Articles 12, or 13, of the Law on Tax Procedures.