FEATURED: Business actors tipped on new income tax law

Business players in the ecosystem have been tipped on new provisions and changes made under the new Income Tax Law to avoid any mistakes as it comes into force. In a workshop organized by BDO EA Rwanda on November 18, business people, accountants, auditors, and tax specialists convened together to explore the new amendments and identify whether there are gaps that still need to be tacked. Beatrice Mujawayezu, Director of Business Service and Outsourcing at BDO EA Rwanda, said that with the tax law changes that come at the right time, the government has prioritized citizens given the current economic environment. According to the Ministry of Economic Planning and Finance, to implement the tax reform, the government will forego more than Rwf43 billion for the 2 years (including Rwf20.7 billion for phase 1 of implementation consisting of the tax waiver on the small-income earners, and Rwf22.5 billion for phase 2, which is about tax cut). Fidele Ukwishaka, Tax Manager at BDO EA Rwanda, said that the new law fills some gaps in the previous income tax law. “The old law, had some words that needed to be clarified, some definitions were improved, some practices were clarified, and some provisions were reviewed to ease doing business,” he explained. With the increase in the amount of personal income that is exempted from tax, he said that it will boost the economy in a way that one has a little more to save or spend in consumption. “Government revenue from this type of tax might slightly decrease but this will be offset by taxes from business, because we are expecting the economic activities to increase,” Ukwishaka noted. Lydie Murorunkwere, Managing Director of ML Corporate Services –a company that provides services ranging from registering, licensing, legal and compliance consultation, and taxation to corporate companies –said that it is encouraging to see how regulators are putting effort in easing doing business in the country. “It requires understanding and going through all amendments under the new law so that people can be aware of implications that they hold and knowing which structure is the most appropriate when venturing into business.” Lydie Murorunkwere, Managing Director of ML Corporate Services –a company that provides services ranging from registering, licensing, legal and compliance consultation, and taxation to corporate companies –said that it is encouraging to see how regulators are putting effort in easing doing business in the country. “It requires understanding and going through all amendments under the new law so that people can be aware of implications that they hold and know which structure is the most appropriate when venturing into business.”

News

FEATURED: Business actors tipped on new income tax law