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Declare Withholding tax (WHT)
The withheld tax should be declared and paid to the tax Administration within fifteen (15) days following the the month in which the tax was withheld. The declaration is done electronically through E-tax system.
If the deadline falls on a public holiday or weekend: The due date is extended to the next working day.
As a taxpayer, if you fail to declare and pay your withholding tax within the legal time limit, you must pay the tax due and you are subject to an administrative fine as provided by the Tax procedure law. It provides for both general fixed administrative fines and non-fixed administrative fines for non-filers.
For fixed administrative fines, a taxpayer provides different rates:
Frw 50,000: If the annual turnover is below Frw 20 million:
Frw 300,000: For a public institution, a non-profit organization or a taxpayer whose annual turnover exceeds Frw 20 million
Frw 500,000: If they fall under the category of large taxpayers.
In addition, there are non-fixed administrative fines, provided as follows:
A penalty of 20% of the due tax applies if the delay does not exceed 30 days.
A penalty of 40% applies if the taxpayer pays within 31 to 60 days after the deadline.
A penalty of 60% applies if the delay exceeds 60 days
Administrative fines for declaring less than the correct tax due
A taxpayer who submits a declaration, and is found by RRA to have declared lower tax due that is more than 10% of the correct amount but less than 20% of the correct amount, he is subject to an administrative fine of ten percent (10%) of the amount of the understatement.
A taxpayer who submits a declaration, and is found by RRA to have declared lower tax due that is more than 20% of the correct amount, must pay the difference and is subject to a fine of 20% of the amount of the understatement.