The treaty aims to boost investor confidence in both countries, especially in the technology, finance, agriculture, and logistics sectors.
Nigeria’s Federal Ministry of Information and National Orientation announced on 27 June 2025 that it had signed an income tax treaty with Rwanda.
This is the first agreement of its kind between the two countries.
The tax treaty aims to prevent double taxation, ensure tax certainty, align with global tax standards, and combat fiscal evasion, fostering private sector growth and stronger bilateral ties. The agreement also intends to boost investor confidence in both countries, especially in the technology, finance, agriculture, and logistics sectors between Nigeria and Rwanda.
The tax treaty between Nigeria and Rwanda outlines the taxes it governs for each country. For Nigeria, it includes personal income tax, corporate income tax, petroleum profits tax, capital gains tax, the Police Trust Fund levy, and the National Agency for Science, Engineering, and Infrastructure levy. For Rwanda, it covers personal income tax, corporate income tax, capital gains tax, and tax on rent from immovable property.
The treaty also establishes a withholding tax rate of 10% for dividends, interest, royalties, and fees related to technical services, such as professional, managerial, technical, or consultancy services.
The treaty will take effect after both nations exchange ratification instruments and will apply starting January 1 of the year immediately following its activation.
