De-registration

• De-registration is where a taxpayer applies to have his name/business removed from the records of the RRA in order not to be obliged to declare a certain tax basing on certain present conditions.
• 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 from the time 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.
• If RRA is satisfied that the taxpayer will be subject to a given type of tax, the de-registration is effected from then. De-registration of taxpayers that are subject to Personal Income Tax and Corporate Income Tax is considered when that tax payer fails to submit returns for annual profit tax for three (3) consecutive years .
• The de-registration becomes effective only if RRA is satisfied that the taxpayer is not operating as a commercial activity that generates more than RW 1.2 million turnover a year or not operating at all.
• De- registration of taxpayers that are subjects to VAT is considered when that taxpayer fails to submit returns for VAT for six consecutive months. De-registration becomes effective only if RRA is satisfied that the tax payer is not operating to a level of 20 Million turn over a year or taxpayer has not registered voluntarily.
• De-registration of taxpayers that are subject to PAYE is considered when the taxpayer fails to submit returns for PAYE for three consecutive months. De-registration becomes effective only if RRA is convinced that the taxpayer is not employing any person.
• The commissioner for Domestic taxes has the powers to authorize the de-registration of taxpayers subject to the policies and procedures set out above.
• Taxpayers are de-registered immediately upon satisfaction of RRA that the taxpayer will not be operating above the threshold set out for each particular tax.

• Conditions for de-registration;
• a) Non filing of returns;
• - Six (6) consecutive months for VAT declaration
• - Three (3) consecutive years for Personal Income Tax and Corporate Income Tax
• b) Non operational at all;
• c) Not employing staff for a period of not less than three (3) consecutive months for PAYE declaration;
• d) Businesses receiving VAT on sales less than 20 million francs annually or 5 million francs in three (3) months of operation;