RWANDA Law and Practice Contributed by: Jean Pierre Kesteloot and Penina Ngabire, Liedekerke Great Lakes
2.3.5 Requirements for a Lease to Be Valid and Registrable The lease needs to be certified to be valid and regis - trable. If the lease is not in English, an English transla - tion will be required. 2.3.6 Taxes/Duties Payable for Registering a Lease The registration of a lease is subject to a fee ranging from USD500 to USD10,000 for the registration of an interest in an aircraft or a fee of USD3,000 for the registration of an interest in an engine or any other components. 2.3.7 Registration of Aircraft in Alternative Countries There is currently one aircraft registered in Turkey which is habitually based in Rwanda. 2.3.8 Requirements for Documents Concerning Registration The RCAA requires that all documents submitted to it be certified (ie, notarised) copies. While it is not always mandatory, it is strongly recommended to provide an English translation of documents submitted to the RCAA. 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor A foreign lessor will not be required to pay any taxes as it is not operating in Rwanda. The lessee is solely responsible for paying all relevant taxes and with - holding applicable taxes in accordance with the tax legislation. 2.4.2 Effects of Leasing on the Residence of a Foreign Lessor A foreign lessor will not be deemed to be resident, domiciled or carrying on business in Rwanda as a result of being a party to, or enforcing, a lease. 2.4.3 Engine Maintenance and Operations If all obligations relating to operation, maintenance and insurance of an aircraft or engine rely on the air - craft operator (ie, the lessee) as per the lease agree - ment, there is generally no liability imposed on a for - eign lessor in that respect.
2.4.4 Damage or Loss Caused by an Asset If all obligations relating to operation, maintenance and insurance of an aircraft rely on the aircraft opera - tor (ie, the lessee) as per the lease agreement, there is generally no liability imposed on a foreign lessor as a result of damage or loss caused by the aircraft. 2.4.5 Attachment by Creditors Creditors of a domestic lessee generally have no rights under Rwandan law to attach an aircraft leased to it as the lessee is not the legal/registered owner of the aircraft. 2.4.6 Priority of Third Parties’ Rights Rwanda declared under Article 39 (1) of the Cape Town Convention that: • liens in favour of workers for unpaid wages arising since the time of a declared default declared by an employer under a contract to finance or lease the subject object; and • liens in favour of repairers of an object in their pos - session to the extent of service performed on and value added to that object, will have priority under its law over an interest in an object equivalent to that of the holder of a registered international interest and will have priority over a reg - istered international interest, whether in or outside insolvency proceedings. 2.5 Insurance and Reinsurance 2.5.1 Requirement to Engage Domestic Insurance Companies According to the law governing the organisation of insurance business, a foreign insurer may be author - ised by the BNR to cover a risk in the territory of Rwanda where: • no Rwandan insurer is able to cover that risk; or • the class of insurance required is not found in Rwanda. In all other cases, it is mandatory that either all or part of the insurances be placed with Rwandan insurance companies.
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