The double taxation avoidance agreement (DTAA) signed between the Republic of Mauritius and the Republic of Rwanda has come into force on 4 August 2014, following the completion of necessary internal procedures by both parties.
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The tax deal was initially signed on 20 April 2013, under which traders from the two countries will no longer be subjected to double taxation.
The new agreement will see introduction of a 10% withholding tax on dividends, loyalties and interest, while investors from either country will part with a 12% management fees.
The pact will enable both the governments to exchange information and track investors trying to avoid tax.
On 12 March 2014, the Rwandan president signed the ratification instrument for the Rwanda-Mauritius agreement for the avoidance of double taxation.
The provisions of the agreement are considered to apply at any income year beginning on or after 1 January 2013 in Rwanda, and at any period beginning on or after 1 July 2013 in Mauritius.
