RRA reminds communication and technology sector of their tax obligations
Rwanda Revenue Authority met over a hundred business persons working in the technology and communication related activities for tax compliance risks, as many show red signal.
According to Sam Kabera, who deals with tax compliance risks management at RRA, majors issues in that sector include risks resulted from the fact that many do provide inaccurate information during registration while others are not registered at all and remain working informally, late filing, missing returns and late payment.
Another risk include under reporting of income and expenses, absence of books of accounts, failure to return VAT and other withholding taxes including PAYE, non-issuance of EBM invoices are other revelations by Rwanda Revenue Authority, which uses a risk differentiation framework, based on the available database of taxpayers.
RRA recommends taxpayers to declare all revenues earned, and pay necessary taxes as provided by the law in real time. The tax administration guarantees total self-assessment and full freedom in complying with tax obligations, but the law guarantees high authority to audit to ensure that the taxpayers who lag behind or boycott paying taxes, pay after the law enforcement which include penalties.
The primary reason to be is not to sanction, but to ensure that every business operator is in the tax net and abide by tax law, hence contributing to the national development.
Richard Nzamwita, alpha soft dealing with software development commended RRA for engaging taxpayers for discussions and respond to questions raised by the business community.
He said that major challenge in taxation of technology related work is that many operators are not aware of tax law and their obligations. According to Nzamwita, developers and other IT operators have more opportunities in working formally and paying taxes. “It’s hard to be successful when they are not known,” he said, adding that all operators should register with in order to get recognition to be able to compete widely.
Another problem according to Nzamwita, is that some people give job offers and tenders to people working clandestinely, advising that clients should go to those recognized to have their work done properly.
Ronald Niwenshuti who chaired the meeting on behalf of the deputy commissioner for Compliance Risk Management commended complaint taxpayers, calling for people with risks to get in touch with RRA for appropriate solutions.