Penalties and Interest

Interest

• 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:

• a) file a tax declaration on time;
• b) file a withholding declaration on time;
• c) withhold tax;
• d) reply to an information request of the Tax Administration;
• e) cooperate with a tax audit;
• f) communicate the capacity or appointment as described by Article 7 §2 of the Law on Tax Procedures;
• g) register as described by Article 10 of the Law on Tax Procedures; or
• h) Comply with Articles 12, or 13, of the Law on Tax Procedures.

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