Rwanda: Tax proposals in budget include investment incentives, tax holidays

Rwanda: Tax proposals in budget

The 2016 budget for Rwanda, presented 9 June 2016, includes a proposal to repeal corporate income tax for international companies with headquarters in Rwanda and with an investment of U.S. $10 million.

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The budget also proposes:

  • A seven-year tax “holiday” for any person investing more than U.S. $50 million in Rwanda 
  • To impose a 15% rate of income tax on certain “priority sectors” and to increase capital allowances to 50% (up from 40%) for investments made in the country, whether made in or outside of Kigali in order to enhance and boost investment opportunities 
  • As part of the tax reforms, to repeal certain existing tax incentives, such as the 3% tax discount for certain exports of goods or services or for employing a specific number of persons in Rwanda
  • All transactions with related entities are to be reported on transfer pricing documentation, and filed with the company’s annual tax return

 

Read a June 2016 report [PDF 661 KB] prepared by the KPMG member firm in Rwanda: Budget Brief

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