Rwanda Revenue Authority is reminding all taxpayers registered on Property Tax to declare and pay their 2020 property tax on land and building before December 31, 2020.
New Property tax rates were published on RRA web site (https://www.rra.gov.rw/fileadmin/user_upload/lgt_all_compressed.pdf).
These rates were fixed following the Districts Councils and City of Kigali's decisions, in reference to the Ministerial Order no 001/20/10/TC of 10/01/2020 setting standard rates and other criteria to determine the tax rate applicable to plots of land.
Rates were fixed based on a number of criteria which among them include the class of the city where the taxable plot of land is located, level of development of the land where the taxable plot is located; taxable land use; as well as the level of servicing for use.
Ernest Karasira, RRA's Deputy Commissioner for Regions and Decentralized Taxes said that taxpayers need to comprehend the criteria and computation for the new rates to avoid any confusion on how much they ought to pay.
'We therefore encourage them to start the declaration and payment process as early as possible to avoid any delays which may eventually lead to penalties,' he said.
According to the Ministerial Order, the new rates vary from Frw0-300 per sqm, based on the criteria mentioned above.
Rates on taxable buildings on the other hand, were categorized based on the market value of the building; that is to say, the 2020 rate for residential buildings is 0.5%, while for commercial buildings is 0.3% and 0.1% for others.
There has been a slight change on the 2020 rates compared to the previous year's where residential buildings rates were at 0.25%, commercial buildings rates at 0.2%, while others stayed the same.
There will also be a change on the next two years' rates, where by in 2021, residential buildings rates will be at 0.75%, commercial buildings at 0.4% and others will stay the same; while in 2022, residential buildings rates will be at 1%, commercial buildings at 0.5% and others will stay the same.
To avoid any penalties and comply with tax laws, all taxpayers whose properties are not registered on Property Tax are also advised to register as early as before December 31, at any Sector's Office, but they can also request for registration through RRA website: www.rra.gov.rw.
From the website, taxpayers can also find detailed information on the new rates and the categories to which their properties belong.
They can as well use a toll free number: 3004 for more support.
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