Any person who sets up a business or other activities that may be taxable is obliged to register with the Tax Administration within a period of seven (7) days from the beginning of the business activity.
Registering a company owned by an individual or group of people is done by Rwanda Development Board (RDB) via online services https://rdb.rw/e-services/. This service is immediate and free of charge. After company registration, the certificate is issued by RDB.
For individual businesses, registration can be done by RRA, and Tax Identification Number (TIN) certificate is issued freely at countrywide spread RRA branches. There is an RRA office in all 30 districts of Rwanda.
Every taxable business activity with a turnover exceeding Twenty Million Rwanda Francs (Rwf20m) in the previous fiscal year or Five Million (Rwf5m) in the preceding quarter is required by law to register for Value Added Tax (VAT) within seven (7) days from the end of the year or quarter respectively.
Based on the above point, a business that has registered for VAT is legally obliged to acquire an EBM with immediate effect because issuing any other invoice other than the electronic one or not issuing it attracts penalties.
Businesses not meeting the above requirements may register for VAT voluntarily and thus acquire EBM to meet the law provisions.
Any changes, whether related to the taxpayer or line of business shall be notified in writing to the tax administration within seven (7) days from the day of the notice of the change.
For example; if ownership of the business is transferred from Mr. A to B or changes from trading in business to hardware. Failure to make the nonfictions contravenes the law and attracts penalties.
The Commissioner General issues instructions regarding the registration and cancellation of registration on persons who no longer carry out business activities.
Rights of a registered business:
· Base of application for tax clearance certificate to participate in income enhancing activities such as bidding, obtaining a loan
· Base of application for Quitus Fiscale
· Base of interaction with Tax Administration, benefiting for Trainings on tax matters
· Base of transfer of title for movable assets
Obligations of a registered business:
a) Centralized Taxes:
· Must file tax returns such as Personal Income Tax (PIT), Corporate Income Tax (CIP), VAT (for those registered for VAT), PAYE (for those qualifying), Consumption Tax (for those qualifying), Withholding Tax of 3% and 15% for those qualifying.
· Each tax declared must be paid immediately as provided by the law.
b) Decentralized Taxes:
· Must file these taxes and Fees: Trading License Fees, Fixed Assets Tax, Rental Income Tax and Cleaning Fees.
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) Rwandan 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) Rwandan francs if the taxpayer’s annual turnover exceeds twenty million (20,000,000) Rwandan francs; or
- 3° five hundred thousand (500,000) Rwandan 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.
This is where a taxpayer applies to have tax obligations removed from him/her for different but legally acceptable reasons.
De-registration is where a taxpayer is removed from the obligations to declare a certain tax.
Non-filing of returns is not an automatic condition for de-registration. RRA must be satisfied that the taxpayer is not operating at all or is operating to the required level to continue being registered for a given type of tax.
De- registration is decided on a tax by tax basis. For example, a taxpayer could remain registered for PAYE while being de-registered for VAT.
De-registration becomes effective when RRA is satisfied that the taxpayer is not at the time of application for de-registration, operating at a level that makes it liable to a particular tax. De-registration becomes effective when the taxpayer is issued a de-registration letter confirming that he/she is deactivated for a specific head tax as mentioned above.
Conditions for de-registration:
· A taxpayer must be up to date with filing of tax returns, tax accounts must be clean or at zero balance
· A business for which de-registration is being applied for must be non-operational
· Must fill and submit a de-registration form to any RRA branch.
Note the following:
· Non-filing of returns is not an automatic condition for de-registration
· Applying for de-registration does not mean your business has been de-registered
· A business is strictly considered as de-registered by a written confirmation by RRA
· Businesses applying for de-registration require to be truthful in the disclosures they make to RRA
· If you have to reopen the business you must inform RRA to reactivate your TIN
Here you will find different forms to fill when you want deregistration of your TIN. Fill an appropriate form correctly, attach it to your deregistration request and hand it in.
Your request will be processed in three (3) days but you are highly encouraged to be truthful with the information you provide for us to serve you better.
- Assistance form
- De-registration Form for Companies
- De-Registration Form for Individual Taxpayer
- De-Registration Form-Individual-English-PAYE Only_ Eg,Global Fund Staff
- Ifishi y’usaba kwiyandukuza iyari Sosiyete cyangwa Ikigo Cy’ubucuruzi (Kinyarwanda)
- Ifishi y’usaba kwiyandukuza mugihe usora yakoraga ibikorwa ku giti cye (Kinyarwanda)
- Ifishi y’usaba kwiyandukuza mugihe usora yakoraga ibikorwa ku giti cye afite PAYE (Kinyarwanda)