Rwanda: Revenue Authority issued report on taxing digital economy

On 7 August 2021, the Rwanda Revenue Authority concluded its inquiry into the challenges of implementing a digital service tax for companies operating in Rwanda. The inquiry focused on the potential financial strain this tax could impose on businesses that do not achieve profitability, within the context of Rwanda's ongoing efforts towards digitisation. The report also highlighted the need to balance revenue collection with fostering an environment conducive to innovation and investment, as digital services increasingly drive economic growth. This initiative aligns with Rwanda's broader strategy to integrate into regional digital markets while addressing gaps in its tax code, particularly regarding e-commerce and cross-border digital transactions.