Government Issues New Tax Measures To Cushion Businesses Against COVID-19 Impact – Tax


Government Issues New Tax Measures To Cushion Businesses Against COVID-19 Impact

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On May 9, 2020, the Ministry of Finance and Economic Planning
announced new tax measures to cushion businesses against the
effects of the Coronavirus (COVID-19) pandemic, including:

  • allowing the computation of quarterly
    corporate and personal income tax prepayments based on business
    transactions of the current tax period instead of the previous tax
    period as per the provisions of article 34 of the Income Tax Act.
    Implementation modalities for this measure will be issued by the
    Rwanda Revenue Authority;

  • an exemption from employment income
    tax for a specified period of time for all teachers in private
    schools and employees of companies operating in the tourism and
    hotel industry earning a monthly net income not exceeding FRW150
    000. The exemption for teachers will apply for a period of six
    months from April to September 2020 and for hotel and tourism
    employees for a period of three months from April to June 2020;

  • an exemption from value-added tax
    (VAT) for all masks made in Rwanda to contain the spread of the
    COVID-19 pandemic.

Reviewed by Celia Becker, an Executive in ENSafrica’s
Africa Regulatory and Business Intelligence department.

Originally published 12 May 2020

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
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