Rwanda: What New Rules Say About Tax Waivers, Penalties for Tax Evasion

What the report says

Rwanda has introduced new tax relief rules that allow taxpayers in genuine financial hardship to request waivers of principal tax, late-payment interest or administrative penalties, according to The New Times via AllAfrica. The ministerial order was signed by the Minister of Finance and Economic Planning on September 24 and published in the Official Gazette on September 25. It replaces a 2013 order related to certified electronic billing machines, while also updating rules on tax administration and electronic invoicing.

The new framework says hardship alone will not be enough to win relief. Applicants must show that they had been compliant with tax obligations before the financial problems arose and must provide evidence from competent authorities explaining the cause of the hardship. For requests involving only interest or penalties, the principal tax must already be paid or covered by an instalment agreement. Requests to waive principal tax face a stricter process and require a report from the minister in charge of taxes to Cabinet.

The order also sets out how tax administration will review applications and what information taxpayers must submit, including details on the liability, the affected tax period and the circumstances behind the request. In a separate provision, people who report tax evasion may receive 5% of recovered principal tax, capped at Rwf10 million, after the appeal process ends.

The publication says the order also modernizes electronic invoicing rules, including requirements for integrating business systems and reporting damaged or stolen devices within set time limits. The changes matter because they tighten oversight while keeping a formal route for relief in cases of proven hardship.