Assistant Commissioner in charge of Provincial and Decentralized Revenue Division at RRA, Karasira Ernest, urged taxpayers concerned with these two taxes to comply early with their obligations, noting that waiting until the last day often causes challenges.
“We encourage taxpayers to declare and pay early. One may declare now and pay later, but taxpayers should not wait until the last day, as this often creates various challenges, either due to system congestion or limited access to assistance when many taxpayers come at the same time,” he said.
{{Trading license}}
The trading license is paid by any person who has started a business activity within a district, including those already operating a business as well as small and medium enterprises that have completed their two-year tax exemption period.
In determining the amount payable, consideration is given to taxpayers who can present their annual turnover from the previous year and those who cannot.
Taxpayers subject to the trading license may choose to pay annually or quarterly. If a taxpayer chooses to pay annually, they must declare and pay no later than 31 January 2026, which is the deadline for annual payment. For those who opt for quarterly payment, the declaration of the first quarter must also be done by 31 January 2026.
The second quarter must be paid by 30 April 2026, the third quarter by 31 July 2026, and the fourth quarter by 31 October 2026.
In the electronic declaration system, selecting the first quarter automatically means the taxpayer has chosen quarterly payment. Selecting the fourth quarter means the taxpayer is paying for the entire year.
The trading license can be declared through the RRA website by selecting the declaration of decentralized taxes, entering the taxpayer identification number (TIN) and password, and completing the required information until a payment reference number is generated.
Taxpayers may also use *800# on a mobile phone, follow the instructions, and obtain a payment reference number.
{{Rental Income Tax}}
Taxpayers required to declare and pay rental income tax include any person who owns immovable property rented out in Rwanda. This tax does not apply only to companies, but also to individuals who are not registered under corporate income tax.
Rental income tax is levied on income from rented buildings in whole or in part, income from rented improvements in whole or in part, and income from any other rented immovable property located in Rwanda.
Karasira urged owners of rented properties to promptly register them with RRA if they have not yet done so, in order to be properly taxed.
He explained that, from the total rental income earned in a year, the law allows a deduction of 50 percent as expenses incurred for maintenance and upkeep of the rented immovable property. He added that taxpayers who took bank loans are also allowed to deduct the interest paid.
The rental income tax rate is determined as follows: zero percent for annual rental income from one Rwandan franc to FRW 180,000, twenty percent for annual rental income from FRW 180,001 to FRW 1,000,000, and thirty percent for annual rental income above FRW 1,000,000.
Karasira reminded taxpayers concerned with the 2025 rental income tax to declare and pay it no later than 31 January, urging them to do so early and not wait until the last minute.
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