In line with the new developments relating to the recently launched Kigali International Financial Centre (KIFC) and the ease of doing business in general, the Rwandan parliament adopted the draft law amending the income tax law that has been in force since 2018. The adopted law aims to raise the employment income taxable base threshold from a monthly income of RWF 30,000 to RWF 60,000 and also introduces, among other changes:
- taxation of digital services;
- taxation of partnerships' income;
- extension of definition of permanent establishment; and
- removal of unrealized foreign exchange losses from deductible expenses and capping realized foreign exchange losses arising from related party loan transactions at 4 times of the borrower's paid-up equity.
The amendment law was adopted on 10 November 2021 and will enter into force upon its promulgation by the President of the Republic and publication in the Official Gazette.