Rwanda Investment Law Incentives Attract New Investors

• Rwanda's revised investment law offers incentives for new investments in key sectors.
• Investors can apply for incentives at the One Stop Center and access an online registration system.
• Tax incentives include a zero percent corporate income tax rate for international companies and up to seven years of corporate income tax holiday for certain investors.
• Customs tax exemptions, Value Added Tax refunds, and accelerated depreciation are also available to registered investors.

The new law offers a range of incentives that can drive growth in key sectors such as exports, energy, and ICT.

The Government of Rwanda has revised its investment law to attract new investments, particularly in key sectors such as exports, energy, and ICT. The new law offers a range of incentives that can drive growth in these areas. Investors will still apply for incentives at the One Stop Center, but now they have access to an online registration system developed by the Rwanda Development Board. This system aims to make the process more efficient and cheaper. The application process involves submitting an investment plan or feasibility study that meets certain criteria.

The revised investment law offers several tax incentives, including a preferential corporate income tax rate of zero percent for international companies with headquarters or regional offices in Rwanda. To qualify, these companies must set up actual and effective administration and coordination of operations in Rwanda and perform at least three specified services. Additionally, investors who meet certain criteria can enjoy a corporate income tax holiday of up to seven years. Microfinance institutions are also eligible for a five-year tax holiday upon approval by competent authorities.

Investors in Export Processing Zones can benefit from exemptions on customs taxes and duties, according to the East African Community's customs rules. Registered investors are also exempt from capital gains tax, except for income derived from the sale of commercial immovable properties. Furthermore, they can claim a Value Added Tax refund within 15 days upon submission of relevant documents. Accelerated depreciation is another benefit available to registered investors, with a flat rate of 50% applicable for new or used assets.

Lawyers advising clients on investments in Rwanda should note the new incentives and revised investment law, which may affect their business plans or feasibility studies. They should also be aware of the online registration system and the application process for investment and EIA certificates.

Source: Original reporting via Environmental Impact Assessment