The Rwanda Revenue Authority (RRA) has reminded business operators and anyone engaged in profit-generating activities that the deadline for declaring and paying the first installment (advance) of profit tax is June 30, 2025.
This tax is required by law as a way to help taxpayers pay in installments, allowing them to submit the first part of the annual profit tax early and thus avoid a heavy financial burden at the end of the fiscal year.
In a press briefing, Jean Paulin Uwitonze, Deputy Commissioner for Taxpayer Services and Communications at RRA, warned that failure to comply with the deadline can lead to severe penalties.
“The first advance of profit tax is required from any taxpayer engaged in income-generating activities. It’s not a new tax, but simply the first installment of the annual profit tax. If you don’t comply on time, the law imposes penalties,” he said.
He encouraged traders to prepare in advance to avoid negative consequences.
“We urge businesses to prepare their financial information early. This will help them pay their taxes on time and avoid penalties.”
On the other hand, Elize Mireille, representing Blue Kite Ltd., highlighted the efficiency of RRA’s digital systems.
“Today, we can declare and pay taxes using the e-Tax system without leaving our offices. This greatly simplifies things for businesses and reduces errors.”
She added that cooperating well with RRA benefits everyone:
“When the private sector collaborates properly with RRA, it improves the relationship between government and businesses and accelerates economic development.”
RRA advised taxpayers not to wait until the last minute, as this often causes system congestion or losses due to last-minute errors.
Uwitonze reminded taxpayers that paying early is the best way to avoid all such issues:
“We want taxpayers to know their obligations early and make this first installment on time. Doing so avoids penalties and contributes to national development.”
This first installment applies to all individuals or businesses engaged in profit-generating activities. It must be paid no later than June 30, 2025, via the e-Tax system or through banks authorized to collect government taxes. Failure to do so leads to fines and interest as stipulated by law.
