RWANDA Law and Practice Contributed by: Jean Pierre Kesteloot and Penina Ngabire, Liedekerke Great Lakes
Re-Registration Process The person who becomes the owner of an aircraft already registered in Rwanda must inform the RCAA in writing within five days after becoming the owner. The re-registration process is identical to the registra - tion process. No Consent From Government Entities Government consent is not required as a prerequisite to the execution and delivery of a bill of sale in relation to an aircraft or engine registered in Rwanda. 1.2.5 Taxes/Duties Payable Upon Execution of a Bill of Sale Transfer of Ownership of the Aircraft Value added tax at the rate of 18% is payable as a consequence of the execution of a sale agreement of an aircraft or an engine located in Rwanda, even in transit, at the time of transfer of title. In addition, a fee ranging from USD250 to USD5,000 applies to the re-registration of the aircraft. Transfer of the Ownership Interest in an Entity That Owns an Aircraft 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. No tax or duty will therefore be due.
persons (as amended to date) issued by the Nation - al Bank of Rwanda (BNR), there are no restrictions imposed on payments made in foreign currency for goods and services exported or imported. What is prohibited is transacting in foreign currency on the Rwandan market without authorisation, in such cases – ie, if payments are to be made in a foreign currency, the payor must apply to the BNR for authori - sation to transact in a foreign currency, unless it has already been authorised to do so (such an authori - sation is not general – ie, it is granted for a specific transaction or operation). However, all transfers of funds, regardless of the cur - rency, to non-residents and by Rwandan residents to or from a foreign country must be made through authorised intermediaries (eg, all banks licensed by the BNR). 2.1.4 Exchange Controls There are no foreign exchange controls that could pre - vent rent payments under a lease, or any repatriation of realisation proceeds if the lease is enforced by a foreign lessor. 2.1.5 Taxes/Duties Payable for Physical Execution of a Lease There are no taxes or fees payable for executing a lease physically in Rwanda and/or regarding a domes - tic party or as a consequence of an original or copy of a lease being brought into Rwanda either physically or electronically. 2.1.6 Licensing/Qualification of Lessors The lessor does not have to be licensed or otherwise qualified in Rwanda to do business with a Rwandan lessee. 2.2 Lease Terms 2.2.1 Mandatory Terms for Leases Governed by English or New York Law There are no specific mandatory terms required to be in a lease that would not typically already be included in a lease governed by English or New York law. Mandatory terms required to be in a lease include:
2. Aircraft and Engine Leasing 2.1 Overview 2.1.1 Non-Permissible Leases
All types of operating/wet/finance leases or leases concerning only engines or parts are permissible and
recognised under Rwandan law. 2.1.2 Application of Foreign Laws
A lease involving either a domestic party or an asset situated in Rwanda can be governed by a foreign law. 2.1.3 Restrictions Concerning Payments in US Dollars Under Regulation 42 of 2022 governing foreign exchange operations and Directive 0520/2023-00041 on transaction in foreign currencies by non-licensed
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