Rwanda's investment incentives regime

The flagship of Rwanda's incentives regime is the free economic processing zone, which provides an almost tax-free environment for export-oriented manufacturing and / or re-export trade driven enterprises.

The criteria for accessing the economic processing zone benefits are simple and require that an enterprise:

•  Exports at least 80% of its production

•  Exports 10% if, manufacturing under bond

•  Engages in the export of services

•  Invest only US$50,000, if local and US$100,000 if foreign.

Investors operating outside the FEPZ, but registered with the agency, also benefits from significant duty and tax concession, as follow:

•  Duty free imports of machinery, plants, equipment and raw materials if imported from COMESA or a flat
   fee of 5% in lieu of all duties if imported from non-zero-rated sources.

•  Benefits under common incentives provisions which allow for:

•  An investment allowance of 30% of the value of invested capital during the first year of operations,

•  Additional deduction from taxable income of 50% of training, research and product development costs.

•  The right to fully expend cost of providing infrastructure of the site of the business operations

•  Duty draw back for all duties and taxes paid on imported raw materials for an exporter who is operating
   outside the Free Export Zone.

•  Facilitation by the agency to have access to foreign markets, training, promotion and trade exhibitions;

•  Tax free export operations, and

•  Cabinet may approve other benefits not provided under the law on recommendation by the Agency Board.

Additional incentives  

In addition to the incentives set forth herein above, an investor operating in a free export economic zone is entitled to:

•  Pay company income tax rate of 10% within a period of ten years from the coming into forces of the
   investment code.

•  Importation of plant, machinery, equipment, building materials and inputs free of duty and value added tax;

•  Exemption from all the other taxes normally levied on a business enterprise operating in the country;

•  One-stop centre facilitation services by the agency at the start of his operation until he winds business in
   the country.

•  Tax free externalisation of funds;

•  Flexible work permits allowance to enable the investors to hire quality expatriate staff;

•  Exemption from withholding tax and taxes on dividends;

•  The right to purchase locally produced goods and services free of duty and value added tax as inputs in
   its production process.