Microfinance Refinancing

Investment Opportunities

• Investment Fund Domiciliation (funds of Funds, hedge funds, Venture Capital & private equity funds, Mutual funds, etc.)
• Asset and wealth management

• SMEs financing (leasing, trade finance, Forfeiting, Discounting, Hedging, etc.)
• Infrastructure Financing (Co-financing/ Syndications)
• Agricultural value chain  financing (ST-LT loans, leasing, crop and livestock insurance, input supply, production and distribution, wholesaling, processing and marketing)
• Microfinance Refinancing (affordable rate)
• Investment banking services (advisory, securities research, restructuring, etc.)
• Training of financial sector professionals (CFA, CFP, actuarial science, etc)
• Micro-insurance and Re-insurance
• Capital Market product Diversification (REITs, Commercial Papers, Corporate and Municipal Bonds, IPOs, etc.)
• Housing finance (social houses)
• Business process outsourcing (BPO) in Financial services
• FinTech in retail Banking and Micro-Insurance

INCENTIVES FOR FINANCIAL SERVICES

Incentives under Capital Market:

• Income tax exemption

Income accruing to registered collective investment schemes and employees’ shares scheme are exempted from income tax.”

• Capital gain tax

Capital gain on secondary market transaction on listed Securities shall be exempted from capital gains tax.

• Corporate income tax

Newly listed companies on capital market are taxed for a period of 5 years on the following rates:

a) 20% if those companies they sell at least 40% of their shares to the public;
b) 25% if those companies sell at least 30% of their shares to the public;
c) 28% if those companies sell at least 20% of their shares to the public;

• Venture capital

Venture capital companies registered with the capital markets Authority in Rwanda benefit from a corporate income tax of zero percent (0%) for a period of five (5) years from the date the decision has been taken.


• Withholding tax on dividends and interest

Withholding tax on dividends and interest income on securities listed on capital markets and interest arising from investments in listed bonds with a maturity of 3 years and above are reduced to 5% when the person who withhold is a resident taxpayer of Rwanda or of the East African Community.

• VAT

The following are exempted from VAT:

(i) Transfer of shares;
(ii) Capital market transactions for listed securities.

Other Incentives specific to Financial services:

• Preferential corporate income tax rate of zero per cent (0%)

For An international company which has its headquarters or regional office in Rwanda and involved in international financial transactions equivalent to at least five million United States Dollars (USD 5,000,000) a year for commercial operations through a licensed commercial bank in Rwanda, among other conditions.

• Preferential corporate income tax rate of fifteen per cent (15%)

For a registered investor operating in the following financial services: global business activities, private equity funds, fund management, wealth management; mutual funds, collective investment schemes, captive insurance schemes, venture capital, and asset backed securities. This incentive excludes locally oriented fund and wealth management, retail banking and insurance activities.

• Corporate income tax holiday of up to five (5) years

Microfinance institutions approved by competent authorities are entitled to a tax holiday of a period of five years (5 years) from the time of their approval.

Other General Incentives:

• Value Added Tax refund within a period not exceeding fifteen (15) days upon receipt of the relevant documents by the tax administration authority.
• A flat accelerated depreciation rate of fifty per cent (50%) for the first year for new or used assets upon fulfillment of defined criteria
• Immigration incentives: A registered investor and his/her dependants are issued with a residence permit in accordance with relevant laws and allowed recruit three (3) foreign employees (for investment equivalent to two hundred fifty thousand United States Dollars (USD 250,000).