RWANDA Law and Practice Contributed by: Aimery de Schoutheete and Penina Ngabire, Liedekerke Great Lakes
tiating a tax stabilisation agreement with the state, particularly since mining exploration is a priority sector and the Investment Law provides that registered investors are entitled to additional investment incentives over and above those pro - vided in the law. 4.3 Transfer Tax and Capital Gains on the Sale of Mining Projects The Rwandan tax system imposes taxes on the sale or transfer of an ML or a QL. In addition, under the 2024 Mining Law, an ML cannot be transferred unless the LH has already invested a certain fixed percentage of the committed investment. Direct Transfer of an ML or a QL If a company directly transfers an ML or a QL, for instance by selling it, this operation would be subject to: • 18% VAT paid by the transferee (which the transferee can claim back if they are regis - tered in Rwanda); and • 28% CIT paid by the transferor (who must include the sale proceeds in their taxable income). Indirect Transfer of an ML or a QL Through a Share Transaction If a company indirectly transfers an ML or a QL through a share transaction, this operation will be subject to 5% CGT paid by the transferor, regardless of whether this operation takes place within Rwanda or abroad. However, if the trans - feror is a registered investor under the Invest - ment Law, it will be exempted from the tax. Transfer Fees In any event, transfer fees are applicable to the transfer of an ML or a QL. Depending on the type of licence (exploration, mining, processing or
trade licence) and the size of the licensed area, the fees vary between RWF900,000 and RWF4.5 million (USD700 and USD3,700). 5. Mining Investment and Finance 5.1 Attracting Investment for Mining Mining activities relating to mineral explora - tion and export are considered priority eco - nomic sectors and therefore benefit from vari - ous investment incentives, both tax related and non-tax related. To benefit from these incentives, the mining investor must obtain an investment certificate issued by the RDB. Tax Incentives Tax incentives available to mining investors are discussed in detail in 4.2 Tax Incentives for Min- ing Investors and Projects . Non-Tax Incentives In addition, a mining investor can benefit from the following non-tax incentives: • the RDB can assign a key account manager at the RDB One Stop Centre to assist the company with administrative tasks; • the RDB can provide notary services to the company; • the RDB can facilitate access to utilities (water and electricity); • the RDB can conduct environmental impact assessments and evaluations; • the RDB can facilitate land acquisition and the obtaining of permits in collaboration with the Kigali City Council One Stop Centre for construction; and • the RDB can facilitate the obtaining of visas and work permits (in this respect, a regis - tered investor who invests the equivalent of at least USD250,000 may recruit three foreign
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