ADVANCED TAXATION

BY: DR. DANIEL TWESIGE

TEL: 0784258777

Course content
1. Introduction to taxation
2. Taxation of decentralised entities
3. Personal income tax (PIT)
4. Corporate income tax (CIT)
5. VAT
6. Transfer pricing
7. Tax planning
8. Taxation procedures

CHAPTER ONE: Introduction to taxation

Taxation: It is a system/process where the government collects a compulsory
Tax: Is a compulsory levy/charged imposed the govenmrnt upon assessment
A tax is a non quid pro quol

Principles/Cananos of good tax system:

1. Equality/Equity: According to this principle there should be a social justice

Tax burden
Money/direct tax burden: It is the amount of money paid as tax
Real/Indirect tax burden: It is the sacrifice the taxpayers make after pa

1,000,000
tax 30%
 Tax 300,000
Budget 800,000
after ta 700,000
2. Productivity: According to this principle, tax revenue should be sufficient to
activities, however, tax should not be high to discourgae production
3. Economy: The cost of administering tax should not exceed the revenue col
4. Convinient: Tax should be levied in a maner that is convinient to the taxpay
5. Diversity: A good tax system should have a multiple taxes
6. Simplicity: The tax system should be simple to understand

Taxtion theories
There are two school of thoughts that are related to taxation that are
a. Capitalist school of thought: According to the capitalists, tax is paid accordi
Benefit approach to taxation:
b. Socialist School of thoughts: Tax should be paid in accordance to the indivi
Ability to pay aproach
Life blood theory: The government needs tax to be able to finance its activitie

Tax Shifting
It is the final rest of tax. There are two types of tax shifting that are
Forward tax shifting: The tax is charged at the supply side of the economy an
eg VAT
Backward tax shifting: The tax is charged at the demand side and shifted to th

Theories of tax shifting

1. Contration theory: According to this theory, tax tends to concentrat
2. Diffusion theory: There is an interaction between purchases and sal
3. Demand and supply theory: This theory uses the price elasiticity of d
 Objective of taxation:
1. Raising government revenues
2. Redistribution of income and wealth
3. Fiscal policy
4. Collecting the market failures

Classification of taxes
1. According to nature/individual tax: Under this tax is classified according to
eg Personal income tax, Corporate tax, Capital gain tax, property tax
2. According to who suffers the burden:
Direct Tax: Under this the tax burden cannot be shifted from one pers
real taxpayer.
Read on advantages and disavantages of direct tax

Indirect Tax: Under this, the tax burden can be shifted from one perso
Read on advantage and disvantages of indirect tax

3. According determination of amount

a. Specific Tax: The tax is determined according the physical unit of the
and property tax on plot of land
b. Advalorem tax: Tax is determined according to the value of the item

4. According to the scope/graduation of rates:

a. progressive tax: Tax rate increases as the the income increases eg P
b. Proportion tax: The tax rate remains constant at all levels of income
c. Regressive tax: The tax decreases as the income increases

5. According to the scope of authority:

a. Decentralised tax: It is a tax under districts and city of Kigali
b. Centralised tax: Tax under the central government

Taxable capacity
It is the maximum capacity of taxapayers to pay tax without much hard
tax that can be collected from a group of taxpayer

Factors influencing the taxable capacity:

1. Size of income and wealth
2. Price levels
3. Standard of living
4. Political stability
5. Distribution of income and wealth
6. Nature of the tax system

Tax Base: It is the value of item on which tax is assessed.

Tax avoidance and Evasion

Tax avoidance: It is the minimisation of tax burden by using the gaps in

Tax Evasion: It is the minimisation of tax burden by provinding informa

or understating of incomes. Thus tax evasion is ilegal

Sources of income in Rwanda:

1. Income from employment and other services
2. Income from agriculture
3. sale, lease, use or transfer of business assets
4. Income from business operations
5. ETC
collects a compulsory contribution from the public
rnt upon assessment of different categories of person

uld be a social justice in the distribution of tax burden

ney paid as tax

xpayers make after paying tax
should be sufficient to cater government
e production
ceed the revenue colected from the particular tax
nvinient to the taxpayers

ation that are

sts, tax is paid according to the benefits enjoyed.

cordance to the individuals' ability to pay

to finance its activities. Tax in government is like blood in human being

ng that are
de of the economy and shifted to the demand side of the economy

side and shifted to the supply side. Eg Consumption

x tends to concentrate on certain class/group of people.

een purchases and sale of factors of production
he price elasiticity of demand and supply
lassified according to characteristics of tax
property tax

shifted from one person to another. Thus, tax is paid by the

hifted from one person to another eg. VAT

he physical unit of the item eg consumption tax on petrolium product

o the value of the item. Eg consumption tax on bear

ncome increases eg Personal income tax, PAYE, Rental income

at all levels of income (CIT)
e increases

d city of Kigali
 ax without much hardship/ Or it is the maximum

ssessed.

en by using the gaps in the tax law. Thus tax avoidance is legal

by provinding information either through over stating of expenses

 CHAPTER TWO: DECENTRALISED TAX
It is a tax under districts and the city of Kigali
Types of decentralised taxes
1. Immovable property taxes
2. Trading License
3. Rental income

Immovable property taxes

It is the tax on market value of building and plot of land

Tax base for immovable property tax

The tax base for building is the market value of the building and for lan
Tax period is one year starting from 1/1 to 31/12
Declaration period is by 31/12 of the same tax period

Market value of Building:

The market value of building is either the construction cost or the pur
In case there is an improvement on the property or a distruction of the
of the property changes by 20%, the market value of the property sho

Properties exempted from immovable property taxes

1. Residential building occupied by the owner and the family
2. Government properties where no profit orriented activities t
3. Properties for diplomats
4. land established for settlements where insfrastructures have
5. Land for agricture which does not exceed two hactares

Tax rates for Buildings

Buildings are divided into three that is Residential, Commercial and Industrial
For residential buildings, the tax rate is 1% but this was implemented i
2019 2020 2021 2022
0.25% 0.50% 0.75% 1%
Note: If the residential building is 4 floors and above including a basemate, th

For commercial buildings, the tax rate is 0.5% and it was also impleme
2019 2020 2021 2022
0.20% 0.30% 0.40% 0.50%

For industrial building the tax is 0.1%

Tax rate on plot of land

The tax rate on plot of land is determined by the district council and it
Note: If the plot of land exceeds the normal size (300 square meter) th

Normal tax 200

Plot of land is 550 square meter
Computation of tax
Normal size (300*200)
Excess (250* 300)
Total tax to be paid

Fines and penalties

1. Failure to declare a property
2. Failure to declare the property on time
3. Understatement of the property
The penalty is 40% of the amount of tax due
Late payment of property tax
 The interest for late payment is 1.5% per month plus admistrative pen

Trading license
This paid by anyone who starts a commercial activity in Rwanda. The t

VAT reigistered taxpayer and taxpayer in exempted goo

Annual turnover
0 - 40,000,000
40,000,001 - 60,000,000
60,000,001 - 150m
above 150m

Other business activities

Activity
Vendors wothout shops
Vendors with shops
Transport on motor vehicle
Other business activities
Note: If the taxpayer starts the business activity in the middle of the period, t
in accordance to the remaining months

Rental Income
It is income from rent of buildings and improvements made on land owned b
The tax period for rental income is one year starting from 1/1/ - 31/12. Renta
by 31/1/ of the next period

Computation of taxable rental income

Gross rental income
Less allowable expense (50% of gross)
 Less interest expense
Taxable rental income

Tax liability
0 - 180,000
180,001 - 1,000,000
Above 1,000,000

Example: John owns two properties in Kigali. Property one was constructed u
interest rate of 15% while property was fininced using own savings. He receiv
property. All the prperties were occupied throughout the year
Required: Compute the taxable income and the tax payeble
Gross rental income (800,000*2*12)
Less allowable expenses (50%*19,200,000)
Less interest expense (15%*20,000,000)
Taxable rental income

Tax liability
0 - 180,000 0%
180,000 - 1,000,000 20%
1,000,001 - 6,600,000 30%
Tax payable
ot of land

f the building and for land it is the square meter

period

struction cost or the purchase cost of the building

rty or a distruction of the property and the value
alue of the property should be adjusted.

e property taxes
owner and the family
ofit orriented activities takes place

ere insfrastructures have not yet been constructed

ceed two hactares
mmercial and Industrial buildings
this was implemented in four phases

ncluding a basemate, the tax rate is reduced by 50%

and it was also implemented in four phases

he district council and it ranges from 0- 300Frw per square meter

ze (300 square meter) the tax rate is increased by 50% on the excess part

60,000
75,000
135,000
 th plus admistrative penalty of 10%

activity in Rwanda. The trading license is paid every year.

xpayer in exempted goods

tax
60,000
90,000
150,000
250,000

Rural area Towns Kigali

6000 8,000 10,000
20,000 30,000 40,000
40,000 40,000 40,000
20,000 30,000 40,000
e middle of the period, the trading license is apportioned

made on land owned by an individual

rom 1/1/ - 31/12. Rental income is declared

ncome
XXX
(XX) 0-180 0
 (XX) 9,600,000
XXX (3,000,000)
6,600,000

0%
20% 3000000
30% 19200000

y one was constructed using a loan of 20,000,000 at annual

g own savings. He receives a monthly income of 800,000 from each
the year

19,200,000
(9,600,000)
(3,000,000)
6,600,000

-
164,000
1,680,000
1,844,000
cess part
Interest
income rent
 CHAPTER THREE: PERSONAL INCOME TAX (PIT)
It is the taxation of individual incomes
Residence
An individual is considered to be a resident in Rwanda for tax purposes if he/
conditions
1. Has got a permenent residence in Rwanda
2. Has got an habitual abode in Rwanda
3. A Rwandan representing Rwanda abroad
4. An individual who has stayed in Rwanda for 183 days in a tax period

Implication of residence in tax

1. A resident individual is taxed on incomes generated in Rwanda and outside
2. A resident individual is taxed under the PIT whereas a non resident will be

PIT Rate
0 - 360,000
360,001 - 1,200,000
Above 1,200,000

Tax period
It starts from 1/1 - 31/12
Sources of individual incomes
1. Investment income
2. Employment income
3. Business profit

Investment income
It include
1. Capital gain from shares
2. Finance income
3. dividends income
4. Royalty incomes
5. Rental income

Capital gain from shares

It is the income from the sale or transfer of shares. The capital gain tax
is 5%
Computation of tax base
Proceeds from sale of shares/Market value of shares
Less cost of shares
Capital gain
Capital gain tax 5%

Example. John owns 300,000 shares from Akandi limited. The shares w
in 2010 at 200frw per shares. In 2022, he sold 130,000 shares at 350fr
Required: Compute the capital gain tax

Proceeds from sale of shares (130,00*350)

Less cost of shares (130,000*200)
capital gain
Capital gain tax at 5%

Declaration date is 15th after the end of month of withholding

Exempted:
1. Capital on shares that are listed at Rwanda stock exchange
2. Capital gain shares that are under collective investement scheme
 Finance income
The finance incomes include:
1. Interest on bank deposits
2. Interest on bank guarranttee
3. Interest on government securities
4. Interest on private securities
The tax rate on finance income is 15%. However, interest on government bon
at leat 3 years the tax is 5%

Dividend incomes
The dividend income is taxed at 15%. However, for dividend incomes on shar
it is taxed at 5%

Royalty income
It includes:
1. Use of intangible assets
2. copy rights
3. trade marks
4. use of natural resources
The tax on royalty income is 15%

Rental Income
It is income from rent of machines and equipment
The tax period for rental income is 1 year starting from 1/1 to 31/12
Computation of the tax base
Gross rental income
Less allowable expenses (10% of gross)
Less depreciation
Less interest expenses
 Taxable rental income
For individual we apply the PIT
0 - 360,000
360,001 - 1,200,000
Above 1,200,000

Ndikumana owns machines and equipment. The cost of machines and equipm
during the purchase of the machines, he borrowed 20,000,000frw from bank
interest at rate of 18%. During the year, he received 67,000,000 from the ren
and equipments.
Required: compute the taxable rental income and tax payable.
Gross rental income
Less allowable exp. (67m*10%)
Less depreciation (25%*50m)
Less interest expenses (20m*18%)
Taxable rental income

Tax laibility
0 - 360,000
360,000 - 1,200,000
1,200,001 - 44,200,000
Tax laibility

Taxation of Employment income

It is an income from the contract of providing a service. Employment in
1. Salaries, wages, bonuses, comission, travel allowance, leave pay, pa
housing allowance, cost of living allowance, substance allowance
2. Reimbursement of personal expenses
3. Redundancy and terminal benefits
4. Pension payment
5. Any payament received in cash as a result of current, past or future

Exempted employment income

1. Reimbursement of expenses incurred on official duty
2. Contribution in a state pension fund (RSSB)
3. Contrubution in a licenced medical provider
4. Contribution in a private recognised pension fund
5.income of a non resident paid an international cooperation or by ho
is a bilateral agreement

Benefits in Kind
Is any payment an employee receives which is not in cash
1. A company house: The benefit is calculated at a rate of 20% of all th
2. A company car: The benefit is calculated at a rate of 10% of all the c
3. Loan and salary advance
a. Loan benefit: The loan benefit is calculated as the difference
the rate offered by the employer
b. salary advance: It is calculated in the same way a loan benefi
advance, the three month salary is exempted.
4. Domestic employees: The benefit is the amount paid by the employ
5. School fees: The benefit is the amount paid by the employer
6. Any thing an employee receives which is not in cash it is a benefit in

Casual Labour
Is someone who does not use special skills on the job and does not exc
Casual labour is taxed at a rate of 15% and the first 30,000 is exempted

Second employment: Income from second employment is taxed at 30%

 PAYE system
PAYE is the tax on employment income. Income from the first e
Monthly bands
0 - 30,000
30,001 - 100,000
Above 100,000

Example
Kayitesi is employed KOB bank limited as the director of finance under
1. Basic salary per month
2. communication per month
3. cost of living allowance per month
4. Bonus 5% of basic salary
A company car that shes uses both private and business
6. A company house in Nyarutarama
7. Two house girls paid by the company at 60,000 per month
8. schools of her doughter at 400,000 per month
Other relevant information
1. Receive a loan of 40,000,000 at 6%, the inter bank rate is 14% per ye
2. Travelled to south Africa to attend a business meeting and the comp
3. Went for a holiday in Dubai together with the family and the compa

Required:
Compute the taxable employment income and the tax payable
Monthly taxable income
Basic salary
Add other cash benefits
Communication allowance
cost of living allowance
Bonus (5%*1,800,000)
Gross salary/Total cash benefits
Add benefits in kind
A company car (10% * 2790,000)
A company house (20%*2,790,000)
domestic employees (60,000*2)
School fees
Loan (14% - 6%)*40m)/12
Air ticket
Taxable employment income

Tax liability/tax payable

0 - 30,000
30,001 - 100,000
100,001 - 6,913,667

Taxation of business Profit of an individual

Business profit is income from all the business activities less the busine

Allowable business expenses

1. It relates for the direct purpose of the business
2. It relates to the particular tax period
3. It has supporting documents
4. It leads to a decrease in the asset value

Non allowable expenses

1. dividends and transfer to reserves
2. Entertainment (Except sports for employees)
3. personal consumption
4. Donation to charitable organisation that exceeds 1% of the turnove
5. fines and penalties
6. 20% of expenses which cannot be seperated business from private
7. Capital expenses
8. Interest on loan from related parties that exceeds 4 times the equity
9. Technical, professional, management, and royalty fees paid to non r
10 Recoverable VAT and income tax

Depreciation
Tax depreciation is allowed for tax however, accounting depreciation i
Tax depreciation: the tax depreciation must be calculated according to
Land and artcraft
Building
heavy industrial machines
Computer and accessories
Other assets (motor vehicle, furniture equipment, simple machines)
Intangible assets
ICT equipment with 10 year useful life

Depreciation base
Cost/NBVof assts
Add new asset
less Disposal
Depreciation base
Dep rate X%
 Bad debt
For bad debt to allowed it must meet certain conditions
1. It was included in the previous sales
2. it has been written off from the books of accounts
3, The taxpayer has taken steps to recover and failed and has got evide
4. if the bad debt is below 3m and it has taken 3yrs you only conditon

Computation of adjusted taxable income

Net profits
Add back non allowable expenses
Less expenses not recorded
Less non allowable incomes
Add allowable incomes not recorded
Less capital allowance Tax depreciation
Adjusted taxable profits
L INCOME TAX (PIT)

esident in Rwanda for tax purposes if he/she meets the following

n Rwanda

a abroad
Rwanda for 183 days in a tax period

ncomes generated in Rwanda and outside Rwanda

er the PIT whereas a non resident will be taxed a withholding of 15%

0%
20%
30%
e or transfer of shares. The capital gain tax on shares

s/Market value of shares

0 shares from Akandi limited. The shares were purchased

. In 2022, he sold 130,000 shares at 350frw per shares
tal gain tax

s (130,00*350)

r the end of month of withholding

listed at Rwanda stock exchange

e under collective investement scheme
ecurities

5%. However, interest on government bond with a maturity period of

%. However, for dividend incomes on shares that are listed at RSE

and equipment
1 year starting from 1/1 to 31/12

% of gross)
 0%
20%
30%

uipment. The cost of machines and equipment is 50,000,000

es, he borrowed 20,000,000frw from bank and pays annual
year, he received 67,000,000 from the rent of machines and

tal income and tax payable.

67,000,000
(6,700,000)
(12,500,000)
(3,600,000)
44,200,000

0% -
20% 168,000
30% 12,900,000
13,068,000

ent income
tract of providing a service. Employment income includes
comission, travel allowance, leave pay, payment in lieu of leave
ving allowance, substance allowance
al expenses
benefits
 cash as a result of current, past or future

ent income
ses incurred on official duty
nsion fund (RSSB)
d medical provider
ecognised pension fund
paid an international cooperation or by home country where there

receives which is not in cash

nefit is calculated at a rate of 20% of all the cash benefits
fit is calculated at a rate of 10% of all the cash benefits

oan benefit is calculated as the difference between the inter bank rate and
e employer
s calculated in the same way a loan benefit is calculated, however, for salary
onth salary is exempted.
benefit is the amount paid by the employer
the amount paid by the employer
ceives which is not in cash it is a benefit in kind

e special skills on the job and does not exceed 30days of work in a tax period
te of 15% and the first 30,000 is exempted

e from second employment is taxed at 30%.

 ployment income. Income from the first employer is taxed under the PAYE system
annual bands
0% 0 - 360,000
20% 360,001 - 1,200,000
30% Above 1,200,000

nk limited as the director of finance under the following contractual agreement

1,800,000
500,000
er month 400,000
90000
s both private and business
utarama
e company at 60,000 per month
t 400,000 per month

00 at 6%, the inter bank rate is 14% per year

o attend a business meeting and the company reimbused 2,000,000 used on the mis
ai together with the family and the company purchased all the tickets at 2,500,000

yment income and the tax payable

1,800,000

500,000
 400,000
90,000
2,790,000

279,000
558,000
120,000
400,000
266,667
2,500,000
6,913,667

0% -
20% 14,000
30% 2,044,100
2,058,100

of an individual
m all the business activities less the business expenses.

rpose of the business

tax period

he asset value
reserves
orts for employees)

ganisation that exceeds 1% of the turnover

annot be seperated business from private

ted parties that exceeds 4 times the equity

anagement, and royalty fees paid to non resident that exceed 2% of the turnover
ome tax

or tax however, accounting depreciation is not allowed for tax

preciation must be calculated according to the tax laws
0%
5% straight line
5% straight line
50% Reducing balance
furniture equipment, simple machines) 25% Reducing balance
10% straight line
useful life 10% straight line

XXXX
XXXX
(XXX)
XXXX
 ust meet certain conditions
vious sales
m the books of accounts
eps to recover and failed and has got evidence from the court about the bankruptcy
m and it has taken 3yrs you only conditon 1 and 2

able income
XXX
XXX
(XXX)
(XXX)
XXX
(XXX)
XXX
Add back non allowable e
W1 Donation
Amount donated
allowed donation (1%208
XXXX
(XX)
(XX)
(XX)
XXXX
or salary

ax period
e PAYE system

- 1,200,000
200,000

agreement

used on the mission

s at 2,500,000
the turnover

g balance
g balance
the bankruptcy
 Particulars Amount FRW
Net loss (4,700,000)
k non allowable expenses
Rent (30%*9600) 2,880,000
Electricity (30%*4m) 1,200,000
Depreciation 1,800,000
provision for bad debt 650,000
purchase of furninture 3,280,000
donation w1 -
fines and penelties 2,650,000
entainment 560,000
personal goods 1,600,000
Adjusted profits 9,920,000
less capital allowance (3,520,500)
Taxable profit 6,399,500
Tax liability
0 - 360,000 -
360,001 -1,200,00 20%
 1,200,001 - 6,399,500 30%

Less tax paid

quarterly Prepayments (150,000*3)
Tax payable

donated 1,790,000
donation (1%208m) 2,080,000

Computatio of taxable income of NGABO

Particulars FRW (000)
Net loss (16,500)
Add back non allowable exp
Prepaid rent (40%*8000) 3,200
Prov bad debt (3000-1000) 2,000
Depreciation 15,000
Income tax 7,000
transfer to reserves 2,500
legal fees 8,000
Donation W1 2,500
Communication (20%*2500) 500
24,200
Less allowable expense not recorded
Accrued salaries (4,000)
Adjusted profit 20,200
Less capital allowance (4,500)
Taxable profits 15,700

W1 Donation
Amount donated 5,000
Allowed donation (1%*250m) 2,500
not allowed 2,500
Tax Liability
0 - 360,000 -
360,001 - 1,200,000 20%
1,200,001 -15,700,000 30%

W1 Donation
Amount donated 5,000
Allowed donation (1%*250m) 2,500
not allowed 2,500
XXX
(XX)
XXX

45,500,000
(26,000,000)
19,500,000
975,000
 0%
20%
30%
168,000
1,559,850
1,727,850

-450000
1,277,850
 -
168,000
4,350,000
4,518,000
 Chapter four: Corporate income Tax
Corpoaret income tax (CIT) is paid by companies and other business associati

Entities that are subject to CIT

1. Companies
2. Cooperatives
3. partnership businesses
4. Government parastatals

Entities exempted from CIT

1. BDF
2. BNR
3. RSSB
4. Agaciro develoment fund
5. BRD

CIT rate: The CIT is 30%

However if a company has listed shares to the general through Rwand
1. 20% if the company has listed 40% shares to the general public
2. 25% if the company has listed 30% shares to the general public
3. 28% if the company has listed 20% shares to the general public

Tax period start from 1/1 to 31/12

Tax declaration for CIT is 31/3 of the next tax period

Corporate Restructuring
The tax defines corporate restructuring as:
1. A merger between resident companies
2. Acquisition of more 50% share capital of another resident company
3. Acquiring more than 50% of assets and liabilities of another residen
4. Take over of a resident by another resident companies
5. Splitting of a resident company into two or more resident company

Tax implication of corporate restructuring

1. The transfering company is exempted from the capital gain tax and
2. The acquiring recognise the assets at their book value
3. The acquiring will continue to depreciates as the previous policy of t

Resident company:
It is the one which meets one of the following conditions
1. It was established under the Rwandan company law
2. It has got a permenent establishment in Rwanda
3. Government odf Rwanda company
4. It has a central management in Rwanda

Liquidation
The liquidation proceeds is taxed the same way dividends are taxed.

Computation of the liquidation proceeds

Proceeds from the sale of assets
Less liabilities
Less share capital
Liquidation procceds
Tax is 15%

Company X was liquidated on 31/12/2021. The sale of assets realised 1

The outstanding liabilities was 50,000,000 and the share capital was 30
 Required: Compute the tax on liquidation
Proceed from sale of assets
Less oustanding liabilities
Less share capital
Liquidation proceeds
Tax on liquidation @15%

Taxation of partnership businesses

Like companies, partnerships are also taxed at 30%

Non allowable income for partners

1. Dividend from local companies is not allowed

Non allowable expenses

in additional to the expenses discussed under individual income, for partners
interest on capital is not allowed

Loss
If the taxable profits turn into a loss, the loss can be carried forward to offset

Long term contracts

These are contracts that exceeds one tax period. At the end of the years reve
must be allocated to the part of the work completed. This can be done by det
of completion

Percentage of completion = Cost of work certifies *100

Estimated cost
Example: Company X entered a contract to construct a road from Huye to Kig
estimated cost for the contract 85,000,000,000
at the end of the year the road was complete up to Nyanza and

Percentage of completion = 34,000,000,000*100

85,000,000,000

Revenue for the period = contract price * percentage of

Revenue for period=

Taxable income
Revenue
Less expenses
Taxable income
d other business associations.

400000

e general through Rwanda stock the CIT rate will be:

to the general public
to the general public
to the general public

ext tax period

nother resident company
bilities of another resident comanpanies
t companies
more resident company

m the capital gain tax and loss

book value
as the previous policy of the acquiree

g conditions
mpany law

ay dividends are taxed.

XXX
(XX)
(XX)
XXX

he sale of assets realised 100,000,000

d the share capital was 30,000,000
 100,000,000
-50,000,000
-30,000,000
20,000,000
3,000,000

dual income, for partnerships

carried forward to offset the future profits for a period of five years

the end of the years revenues and expenses

d. This can be done by determing the percentage
ct a road from Huye to Kigali at 100,000,000,000
0,000,000
mplete up to Nyanza and the company incurred 34,000,000,000

0,000*100

40%
act price * percentage of completion = 100,000,000,0000*40%
40,000,000,000

40,000,000,000
-34,000,000,000
6,000,000,000