Motor vehicle ownership transfer:
Any change of ownership on registration of motor vehicle/ motor cycle like Sale and donation any any other reason that may lead to the change of ownership status should be declared to RRA motor vehicle office within 8 days from the time the transaction was effected.
- A dully filled and signed Motor vehicle physical verification form from Revenue Investigation and Enforcement office -RIED (ex RPD) at Masoro (Prime Economic Zone) bearing a buyer’s Passport size photo for individuals or stamp for companies
- A dully filled and singed transfer ownership form bearing names of the seller and buyer, TIN of the buyer, address and phone number of both seller and buyer. This paper is signed by the invested officer plus the stamp of the society (companies).
- Original vehicle log book.
- Proof of payment of: 30,000 Frw for motorcycle and 60,000 Frw for motor vehicle.
- Contract of sales between the buyer and the seller.
- Photocopy of national identity card for both buyer and seller if individuals. For the society they have to bring their photocopy of status or their business registration license.
- Provide insurance certificates copies from insurance companies.
- The seller (individual or society) must be free from tax liabilities from Rwanda Revenue Authority up to the month that the ownership transfer is likely to take place
- If seller and buyer are outside the country, they send the permission or letter to be represented, that is signed and stamped by the Rwandan embassy in that country.
- If one of the seller or buyer are not able to come to Rwanda Revenue Authority to make contract of sales, they have to send their representative with a letter stamped by notary.
- In absence of the seller, the seller representative must present the power of attorney.
Processing for motor vehicle suspension
Vehicle owners may decide to put their vehicles off-road for a given period. This is done at no expense. The proprietor is required to meet the following RRA procedures:
- Complete and Submit an off-road declaration form;
- Submit Motor vehicle number plates (pair);
- Submit the log-book (Yellow Card);
Upon submission of the above requirements, a taxpayer is given an off-road certificate.
Processing on road resumption of the vehicle
Vehicle owners may decide to put back their vehicles that have been off-road. resumption of such vehicles is administered by the RRA motor vehicle services division.
- Return the off road certificate ;
- complete resume form;
- Avail the motor vehicle/cycle for physical verification;
- Payment of registration fee if prior was not paid
Upon submission of the above requirements, a taxpayer is provided with a new yellow card, tax sticker and number plates.
Motor vehicles for commercial purposes are subject to income tax like any other taxable businesses. In order to facilitate small scale transporters, RRA has adopted a simplified lump sum tax based on the type and use of the vehicles.
New motor vehicles registration:
Registration and acquisition of number plates for new motor vehicles is done at customs offices, however,
- vehicles sold through authorised dealers running private bonded warehouses,
- vehicles sold through government public auctions , embassies and other UN agencies on temporary importation regimes are registered at RRA motor vehicles services head office/customs Department.
- Complete registration form provided by the RRA:
- Physical verification of the vehicle/motor cycle ;
- Payment of registration fees;
Upon completion of the above requirements, the taxpayer is entitled to:
- Registration fee payment slip
- Motor vehicle number plates
- Permanent motor vehicle registration sticker
- Motor Vehicle logo book (Yellow Card).
The following forms are under translation to english language:
Taxpayers are obliged to declare their tax returns originating from their motor vehicles/ cycles incomes on time as it is stipulated in the law. It is advisable to honor this obligation in order to avoid penalties and interests.
“In the event the taxpayer fails to pay tax within the period set forth by the Law, he/she shall be required to pay interest on the amount of tax.
The interest rate is fixed at 1.5 %. Interest is calculated on a monthly basis, non-compounding, counting from the first day after the tax should have been paid until the day of payment, which is included. Every month that begins shall be considered as a complete month.
Interest shall always be payable, even when the taxpayer has lodged an administrative or judicial appeal against the assessment. Interest accrues cannot exceed one hundred percent (100%) of the amount of tax. When the taxpayer pays, the payment shall be used in paying taxes by deducting interest, penalties and tax liability”.
With regard to Income tax, a taxpayer is subject to penalty and fine if she/he has failed to:
- file a tax declaration on time;
- file a withholding declaration on time;b) file a withholding declaration on time;
- withhold tax;
- reply to an information request of the Tax Administration;
- cooperate with a tax audit;
- communicate the capacity or appointment as described by Article 7 §2 of the Law on Tax Procedures;
- register as described by Article 10 of the Law on Tax Procedures; or
- Comply with Articles 12, or 13, of the Law on Tax Procedure
Administrative penalties related to violations of provisions of Paragraph One of this article are set as follows:
- one hundred thousand (100,000) Rwandan francs for a natural person not engaged in any commercial activity and a taxpayer’s annual turnover equal to or less than twenty million (20,000,000) Rwandan francs;
- three hundred thousand (300,000) Rwandan francs if the taxpayer is a public institution or a non-profit making organization and if the taxpayer’s annual turnover exceeds twenty million (20,000,000) Rwandan francs;
- five hundred thousand (500,000) Rwandan francs if the taxpayer was informed by the Tax Administration that he/she is in the category of large taxpayers.
- In case the concerned taxpayer fails to submit his/her certified annual tax declarations and financial statements while he/she has a legal requirement to do so, he/she is subjected to a fixed administrative penalty of five hundred thousand (500,000) Rwandan francs per month until he/she submits them.
- To make an announcement on radio.
- Proof of payment of 1,000 Frw for property ownership certificate at RRA accounts to be submitted to the Traffic Police.
- To make payment of thousands two hundred (1,200frw) of loss certificate on Rwanda National Police/Traffic Police accounts.
- To present a loss certificate from the police with the names and Passport Photo size of motorvehicle owner.
- To make a payment on RRA accounts number,
- Five thousands (5,000frw) for motor vehicle log book
- Fifteen thousands (15,000frw) for one motor vehicle number plate,
- Thirty thousands (30,000frw) for two motor vehicle number plate and
- Fifteen thousands (15,000frw) for one motorcycle number plate