Rwanda looks forward to UAE and Turkish investors to strengthen FDI

The Rwandan government announced in January 2018 that the country recorded FDI worth $1.041 billion in 2017 in comparison to $650.4 million received in 2016.


Devdiscourse News Desk | Kigali | Updated: 04-02-2019 17:07 IST | Created: 04-02-2019 17:07 IST
Rwanda looks forward to UAE and Turkish investors to strengthen FDI
With the agreement firms that pay taxes in Rwanda may not be required to pay the taxes on the same earning back in their home countries (Image Credit: Wikipedia)
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  • Rwanda

The government of Rwanda is giving its endeavour to attract Turkish and UAE investors into the country. The government is putting its effort in doing so as the nation moves to maintain and boost growing Foreign Direct Investment (FDI).

The latest move toward the goal was evidenced in the approval by cabinet last week of the draft law for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income in the two countries. Double Taxation Avoidance Agreement is a bilateral economic agreement between two nations that aims to avoid or eliminate double taxation of the same income in two countries, as reported by The New Times.

The business from Turkey and UAE operating in Rwanda are not obliged to pay taxes twice in (in Rwanda and their home countries) on taxable gains. It is not unusual for a business or individual who is resident in one country to make taxable earnings in another.

With the agreement firms that pay taxes in Rwanda may not be required to pay the taxes on the same earning back in their home countries. This is important as Rwanda seek to increase foreign investments with the agreement serving to provide clarity on how the cross - border transactions will be taxed which will encourage foreign investors.

Chief Executive of Rwanda Development, Clare Akamanzi said to The New Times that the agreement is meant to facilitate investments and the government usually signs such agreements to attract investments. “Avoidance of Double Taxation Agreements are meant to facilitate investments between signatory countries by providing a framework where companies are not taxed twice in their country and investing country. So the government signs these type of agreements with countries it’s attracting to invest here,” Clare added.

In January 2018, the Rwandan government announced that the country recorded FDI worth $1.041 billion in 2017 in comparison to $650.4 million received in 2016.

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