A bilateral double taxation avoidance treaty between Rwanda and Korea came into force on Thursday, December 19, this agreement aims to attract Korean investors to Rwanda and facilitate investment outflow through tax certainty,safeguarding investors against tax discriminatory measures and boosting cooperation between countries on tax matters. The double taxation avoidance agreement (DTAA) was signed on September 13, 2023, on the sidelines of the seventh edition of the Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference in Busan, South Korea. Under the treaty, the maximum tax rat

A bilateral double taxation avoidance treaty between Rwanda and Korea came into force on Thursday, December 19, this agreement aims to attract Korean investors to Rwanda and facilitate investment outflow through tax certainty,safeguarding investors against tax discriminatory measures and boosting cooperation between countries on tax matters. The double taxation avoidance agreement (DTAA) was signed on September 13, 2023, on the sidelines of the seventh edition of the Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference in Busan, South Korea. Under the treaty, the maximum tax rate on dividends, interest, and royalties is capped at 10 percent. Additionally, capital gains from the transfer of shares are exempt from taxation in the source country, except in specific exceptional cases. The treaty aims to ease the tax burden on companies operating in each other’s territories while enhancing measures to prevent double taxation and tax evasion. ALSO READ:Minister Nduhungirehe, Korean Counterpart discuss ongoing partnership between countries The DTAA aligns with Rwanda’s medium-to-long-term objective of positioning itself as a thriving financial hub. It underscores the importance of establishing a comprehensive treaty network, which is essential for future growth and prosperity. With this DTAA, Rwanda has now signed 17 agreements, with several others under negotiation. DTAAs continue to boost the inflow of investments and trade from treaty partners, with the bulk of investors in Rwanda coming from countries such as Turkey, Qatar, the UAE, Mauritius, Morocco, South Africa, Singapore, and Jersey, among others. ALSO READ: Rwanda, Korea sign $1 billion framework arrangement

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