FEATURED: Taxpayers urged to file and pay 2022 Income Tax Quarterly Prepayment (IQP) ahead of deadline

RRA has asked concerned taxpayers to pay the quarterly 2022 income tax prepayment without waiting until the last minute. This payment will be made for the first quarter and will take into account sales and turnovers for the months January, February, and March 2022.

The Rwanda Revenue Authority (RRA), announcing that the first quarterly income tax prepayment must be made within three months from April to June 2018, with the deadline being June 30, 2022, issued an announcement.

RRA says the reminder is a wakeup call for taxpayers that tend to wait until the last moment to file. They could make mistakes due to delays and fall prey to other errors. RRA staff would still be able to provide support if they did not file early enough.

Rwanda Revenue Authority staff at Kimihurura’s head office. File

All taxpayers who have declared a profit for the income tax quarter ending March 2022 and made a profit during the previous fiscal year 2021 are subject to this prepayment filing. Taxpayers who made a nil declaration, and those who declared a loss for 2021 income tax, as well as those who opened their business in 2022 are not concerned with this particular quarter’s filing and payment.

According to Ms Hajara Batamuliza, the Commissioner for Domestic Taxes “The quarterly sales/turnover realized in January/February and March 2022 will be used to calculate this tax.”

“This was one of the Government of Rwanda’s strategies to help businesses cope with the effects of the Covid-19 pandemic since 2020. Prior to that, the way of computing income quarterly pre-payment (IQP) was done based on the previous fiscal year’s annual income tax” she continued.

According to 2021 Tax statistics released by RRA, in Rwanda there are three categories of taxpayers registered under income tax; about 375 are large taxpayers, 840 are medium taxpayers while more than 230, 000 fall under the category of small taxpayers.

The income tax contributes approximately 20% to the total revenue collection, compared to all taxes collected through the Tax Administration.

editor@newtimesrwanda.com