6 April 2017

Africa: Rwanda to Lift Double Taxation for Moroccan Investors

Rwanda's Cabinet on Wednesday approved a law removing double taxation for Moroccan investors while mitigating against tax evasion on income accrued by their businesses.

Moroccan investors have shown great interest in Rwanda ever since King Mohammed VI visited the country in October last year.

"Investments from Morocco are coming in at a high speed; therefore, facilitating them is an opportunity for both countries to boost business and economic opportunities," said Rwanda Private Sector Federation chief executive Benjamin Kasamagera.

The law removing double taxation for Moroccan investors now lays the ground for the implementation of the 21 trade agreements the two parties signed last year.

On Monday, Rwanda hosted over 100 Moroccan investors from whom the country expects more than $100 million in business ventures.

According to the Rwanda Development Board, possible ventures that the Moroccans were presented with include a floriculture project valued at $15 million in Gishari, eastern Rwanda, as well the development of a wholesale market valued at $31 million at the Kigali special economic zone.

Others include multimillion dollar projects in construction, food processing and textiles.

The government is also in advanced talks with Moroccan firm Palmerie Development Group to begin a 5,000 units low-cost housing project worth $68 million by January next year.

Attijariwafa Bank, which is owned by King Mohammed VI, has also expressed interest in acquiring the majority shares in the Rwandan-based lender, Cogebanque.

The move to avoid double taxation is among incentives that government has adopted to woo foreign investments.

Other incentives include a waiver of corporate income tax for foreign companies planning to relocate their headquarters to Rwanda, as well as seven-year corporate income tax holiday for at least $50 million investments in manufacturing, energy, ICT and health services.

Rwanda also offers duty-free importation of machinery, equipment and raw materials.

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