RRA Warns Taxpayers Against Last-Minute Tax Payments

KIGALI - The Rwanda Revenue Authority (RRA) has urged taxpayers to avoid waiting until the last minute to declare and pay real estate tax, road tax, and the third installment of corporate income tax, warning that delays could result in penalties. The deadline for declaration and payment is December 31, 2025.

The Commissioner for Inland Revenue, Batamuliza Hajara, cautioned that as the festive season approaches, taxpayers should complete their obligations early to avoid technical disruptions and late-payment sanctions.

“Waiting until the last minute exposes taxpayers to penalties, especially if technology fails,” she said. “Everyone should pay their taxes and duties in advance so they can enjoy the holidays without any problems.”

Commissioner Batamuliza noted that since the beginning of the year, the RRA has introduced a system allowing early declaration and gradual payment of real estate tax, making it easier for property owners to comply on time.

“With this system in place, there should be no reason for anyone to be late or penalized,” she explained.

Real estate tax in Rwanda is calculated based on a property’s location and use, in accordance with the law governing the financing of local authorities. When a property consists of land with buildings, tax is levied on the value of both the building and the land, even if the land is not developed.

The tax rate, set annually by the District Council or the City of Kigali, must not exceed Rwf 80 per square meter.

Residential properties are taxed at 0.5% of the combined market value of the building and land.

Commercial buildings are taxed at 0.3% of their market value.

Industrial properties and land for small and medium-sized enterprises (SMEs) are taxed at 0.1%.

Detached houses benefit from preferential rates to encourage efficient land use. A plot with a three-storey residential building is taxed at 0.25%, while buildings with more than three floors are taxed at 0.1% of their market value.

Properties exempt from real estate tax include a single residential building designated as the owner’s primary residence, as well as ancillary buildings intended for one household. Even if the owner temporarily does not live in the residence, the building remains exempt, although the land itself remains taxable.

Commissioner Batamuliza clarified that if a property has already been taxed within the same year, a new owner is not required to pay the tax again.

“As of today, more than 70% of taxpayers have already declared their taxes,” she said. “We understand that some have not yet paid, but our message is clear: those who have not declared must do so before December 31.”