Rwanda Revenue Authority Urges Compliance With Jan. 31 Tax Deadline

The deadline applies to business operators required to pay the annual trading license tax, commonly known as patente, for the 2026 tax year, as well as owners of rented immovable property who must declare and pay tax on rental income earned in 2025.

Karasira Ernest, RRA’s Assistant Commissioner in charge of provincial and decentralized Revenue division, said delaying compliance until the final day often creates unnecessary difficulties for taxpayers.

“We encourage those concerned to declare and pay early,” Karasira said. “Waiting until the last day usually leads to challenges, whether related to system congestion or accessing assistance when many taxpayers seek services at the same time.”

The trading license tax applies to anyone who has started or is operating a business in a district, including small and micro-businesses that have completed two years of tax exemption. The tax amount is determined based on whether the taxpayer can demonstrate their total turnover from the previous year.

Taxpayers may choose to pay the trading license tax annually or in quarterly installments. Those opting for annual payment must declare and pay by Jan. 31, 2026. For quarterly payments, the first installment must also be declared by the same date. Subsequent payments are due by April 30, July 31 and Oct. 31, 2026.

RRA said that in its electronic declaration system, selecting the first quarter commits a taxpayer to quarterly payments, while selecting the fourth quarter indicates payment of the full annual amount.

Declarations can be made through the RRA online portal under the section for decentralized taxes using a taxpayer identification number, or through the *800# mobile phone service.

Rental income tax applies to individuals and companies that own immovable property rented out in Rwanda. The tax is charged on income from rented houses, whether fully or partially rented, as well as income from any other rented immovable property in the country.

Under the law, RRA allows a standard deduction of 50% of total annual rental income to cover maintenance and related expenses. Interest paid on bank loans used to acquire or develop rental property is also deductible.

Rental income tax rates are set at 0% for annual income up to 180,000 Rwandan francs, 20% for income between 180,001 and 1 million francs, and 30% for income exceeding 1 million francs.

Karasira urged taxpayers to comply early and avoid waiting until the last minute.