China and Rwanda signed an agreement for the elimination of double taxation with respect to tax on income and the prevention of tax evasion and avoidance (DTAA).
This agreement will play an instrumental role in promoting bilateral trade and investment between both countries, by removing the burden of double taxation on investors from both countries
“This agreement marks an important milestone in our quest to position Rwanda as a financial hub. Rwanda is in process on increasing its DTAA network to attract investment to Rwanda and from Rwanda to the region and beyond”. Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning said.
“The signing of the agreement and its affiliated protocol will effectively reduce the tax burden of taxpayers investing in any either country and further facilitate bilateral economic and trade cooperation and personnel exchange. It will also make a good beginning of the countries’ future cooperation in different fields including improving the capability of tax administration, strengthening the prevention system of tax evasion and avoidance, safeguarding bilateral tax interests and the international tax order,” Rao Hongwei, the Chinese Ambassador to Rwanda said.
“Rwanda and China have a half a century long-standing relationship that extends across multiple disciplines. The DTAA signing today marks another important step towards further strengthening this relationship to better support the expansion of Chinese businesses through Kigali International Financial Centre (KIFC).” Nick Barigye, CEO of Rwanda Finance Limited said.
Key factors that led Rwanda to conclude the DTAA with the Peoples Republic of China include but not limited to, large numbers of investors coming from China, the robust cross border trade, growing appetite for Rwandans to invest in China, sound tax system and good economic relationship between the two countries.
Currently, more than twelve (12) DTAAs have been signed and several others are under negotiation. The Government’s target is to conclude more DTAAs in FY2021/22 in a bid to widen the DTAA network and improve the ease of doing business in Rwanda.
The existing DTAAs already in place have shown a big impact in terms of boosting the inflow of investment and trade from treaty partners. There is a pattern in terms of investors origins and countries that Rwanda has already secured a DTAA with. For instance, there has been a rise in numbers of investors coming from Turkey, Qatar, UAE, Mauritius, Morocco, South Africa, and Singapore which already have DTTA agreement with Rwanda.(End)