RWANDA Law and Practice Contributed by: Jean Pierre Kesteloot and Penina Ngabire, Liedekerke Great Lakes
1. Aircraft and Engine Purchase and Sale 1.1 Sales Agreements 1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement Upon execution of an aircraft or engine sale agree - ment, the following taxes and fees will be payable. • VAT at the rate of 18% is payable as a conse - quence of the execution of a sale agreement of an aircraft or an engine located in Rwanda at the time of transfer of title. VAT is invoiced by the seller to the buyer and is due by the seller to the Rwanda Revenue Authority. • Registration or re-registration (applicable in the event of a change of ownership of an aircraft already registered in Rwanda) in the Rwanda air - craft register (the “Aircraft Register”) is subject to a fee ranging from USD250 to USD5,000. 1.1.2 Enforceability Against Domestic Parties Because a change in ownership is registered in the Air - craft Register (see 1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement ), a sale agreement does not need to be translated, certified, notarised or legalised to be enforceable against a domestic party. However, all documents submitted to the Rwanda Civil Aviation Authority (RCAA) must be certified (ie, notarised) copied, and translated into English. In addition, a (partial) translation could be required by the Rwandan courts if the agreement is not written in Kinyarwanda. 1.2 Transfer of Ownership 1.2.1 Transferring Title Formalities Applicable to the Transferring Title Transfer of ownership of an aircraft or engine regis - tered in Rwanda is valid if the sale agreement meets the following criteria: • it is in writing; • it relates to an aircraft or engine which the seller has the power to dispose of; and • it enables the aircraft or engine to be identified.
As the transfer of ownership is made in accordance with the terms of the sale agreement, it is advisable to explicitly state that the transfer extends to all installed parts, including the Auxiliary Power Unit (APU). Registration of the Transfer Registration of the transfer of ownership in the Aircraft Register is the only means of establishing a priority of a right in an aircraft. Sale of the Ownership Interest in an Entity The sale of the ownership interest in an entity that owns an aircraft or engine will not be effectively recog - nised as a sale of the aircraft or engine itself, provided that entity remains the owner of the aircraft or engine. 1.2.2 Sales Governed by English or New York Law The transfer of title to an aircraft or engine physically delivered in Rwanda will be recognised if the bill of sale is governed by English or New York Law. To be recognised in Rwanda, the bill of sale must how - ever include the following information: • name of the manufacturer; • manufacturer’s serial number (MSN); and • model designation necessary and sufficient to identify the aircraft. 1.2.3 Enforceability Against Domestic Parties A bill of sale does not need to be translated, certi - fied, notarised or legalised to be enforceable against a domestic party. 1.2.4 Registration, Filing and/or Consent From Government Entities The person who becomes the owner of an aircraft in Rwanda must register it with the RCAA. The following applies to the registration process. • The new owner must be either a citizen or a bona fide resident of Rwanda (or an East African Com - munity partner state), a Rwandan legal entity or the government of Rwanda. • The aircraft cannot be registered under the laws of any foreign country. • The new owner must file an application to the RCAA including proof of ownership (eg, bill of sale).
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