GUIDE ON HOW TO CALCULATE

YOUR INCOME QUARTERLY

PREPAYMENT IN 2020

RRA is pleased to inform all taxpayers who have an obligation

of filing income quarterly prepayment that, based on cabinet
resolution regarding the facilitation of tax payment during the
period of implementing measures of prevention against the
spread of Covid-19.
The way of computing income quarterly pre-payment(IQP)
has changed from basing IQP to the previous fiscal year tax to
computing it based on quarterly sales/income/revenues.

A. INCOME QUARTELY PREPAYEMENT (IQP)

PERIODS AND DUE DATES

QUARTER TAX PERIOD FILING/PAYMENT

PERIOD
First January to March April to June
Second April to June July to September
Third July to September October to December
 B. IQP TAX COMPUTATION DURING FY
2020 (1ST IQP TO FILE/PAY FROM
APRIL TO JUNE 2020)
IQP FOR MOTOR VEHICLE/MOTORCYCLE

Taxpayers are requested to choose the number of months when

their businesses were in operations, whereby:
• 0.No work during the quarter under declaration

• 1.One month worked during a quarter under declaration

• 2.Two months worked during a quarter under declaration

• 3. Three months worked during a quarter under declaration

System computes tax normally and prorates it to the number of

worked months to give the IQP tax payable.
For the first IQP, taxpayer has to choose 2 (for two months- January
to February) or 3(for three months- January to March) as some of
motor vehicle or motorcycles continued to work even during Covid-19
Confinement.

Moto cycle pays normally Frw 18,000

each quarter;
Means Frw 6,000 each month.
If taxpayer chooses 2 (for 2 months worked),
the tax computed will be Frw 6000*2=Frw 12,000
EXAMPLE
If taxpayer chooses 3 (for 3 months worked),
the tax computed will be Frw 6000*3=Frw 18,000
All motor vehicles/ motor cycles in transport
activities, the tax will be computed like that.
IQP for other businesses

1ST IQT 2020

Taxpayers are required to fill the total turnover/revenues/total
sales of the quarter under declaration (here January to March
2020)
As RRA is not requiring taxpayers to produce financials for
each three months, the system will compute internally the tax
to turnover ratio of previous year (2019) and apply it to the
quarterly total turnover/revenues/total sales
of the quarter to determine the IQP payable.

URUGERO

Total sales of Frw 10,000,000

quarter (eg.January
to March 2020)

Total sales/revenue Frw 50,000,000

declared 2019

Annual tax computed Frw 80,000

in 2019

Tax to turnover 80,000/50,000,000

ratio (2019)

IQP payable 10,000,000*(80,000/50,000,000)

=Frw 16,000

Normal computed IQP 80,000/4=Frw 20,000

NOTE:

This computation of IQP is done only by taxpayers who filled

2019 fiscal year. Taxpayers with annual tax computed equals
to 0, taxpayer in loss position or taxpayers registered in 2020
are not required to take any actions..
Taxpayers filling under flat and lump sum regimes compute
their IQP in the same way.

THE QUARTERLY SALES TO BE FILLED

IN LINE 10 OF THE IQP DECLARATION
FOR TAXPAYERS WITH DIFFERENT
TURNOVERS ON VAT AND CIT, WILL
BE THE TOTAL INCOME TAXABLE
TRANSACTIONS EARNED DURING
THE QUARTER UNDER
DECLARATION

GUIDE ON HOW TO CALCULATE

YOUR INCOME QUARTERLY
PREPAYMENT IN 2020