Rwanda
Answer ... The applicable mineral taxes are as follows:
- 4% of the norm value for base metals and other mineral substances of that kind;
- 6% of the norm value for precious metals of gold category and other precious metals of that kind; and
- 6% of the gross value for precious metals of diamond category and other precious stones of that kind.
Rwanda
Answer ... The following tax incentives are available for mining operators, upon the fulfilment of certain requirements:
- a 0% corporate income tax rate if a mining company relocates its headquarters to Rwanda;
- a corporate income tax holiday for up to seven years for an investment of at least $50 million;
- a 15% preferential corporate income tax rate for projects exporting processed minerals where up to 50% of the turnover of minerals is produced in Rwanda;
- an investment allowance of 50% or accelerated depreciation of 50%;
- a capital gains tax exemption and free repatriation of capital and assets;
- tax-free imports of heavy machinery used in mining activities; and
- a value-added tax exemption on mining equipment.
Rwanda
Answer ... In line with the Investment Code of 2021, prospective mining operators may seek to negotiate the tax incentives mentioned in question 9.2, as well as other specific incentives in line with the law, by demonstrating the following:
- The mining operation will have a strategic impact on the economy; and
- It meets one of the following criteria:
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- It is an anchor investment with first-mover demonstration effects;
- It will create a significant impact on the value chain in the mining sector;
- It contains a proof of concept for a new way of doing things or a new strategy;
- It will develop market-creating innovations which make essential products simple and affordable and improve livelihoods of the broader population; or
- It is an investment of significant scale in terms of the investment amount, production outputs or number of jobs created.
Rwanda
Answer ... Yes. A number of reforms have been introduced by the new Tax Law of 2023 which may have an impact on mining companies and their staff, including the following:
- changes in the tax brackets for professional income tax (applicable to employees);
- changes in the scope of deductible expenses;
- the conditions for persons to be considered a tax resident in Rwanda; and
- certain tax incentives linked with membership of the Kigali International Financial Centre.
In addition, in recent years, Rwanda has entered into double taxation avoidance agreements with a number of countries that may impact on foreign mining investors in their country of residence. These include South Africa, Singapore, Qatar, Morocco, Luxembourg and Jersey, among others.