MTN Rwandacell Company Overview
Attractive Return Profile | Taxation
(FRw bn)
Effective Income
Tax rate (%)
46.6%
6,8
FY 2018
Income Tax
45.6%
5.7
FY 2019
Reconciliation of Statutory Tax Rate (STR) and Effective Tax Rate (ETR)
38.0%
12.4
•
FY 2020
Commentary
•
•
•
MTN has been ranked among the top 2 best
taxpayers in Rwanda over the last 5 years.
In addition to corporation tax, MTN also pays the
following taxes:
Excise tax which is 10% of Revenue
• VAT 18% and Reverse VAT 18%
Withholding tax at 15%
The increase in the 2020 Corporation tax is
commensurate with the increase in YoY profit
before tax.
The high effective tax rates for years 2018 and
2019 was partly due to tax penalties paid that
were not allowable deductible expenses.
Management fee allowable expense is capped at
2% of turnover. The rest is disallowed and added
back for tax purposes.
(FRw bn)
Profit before Tax
Statutory Tax Rate
Standard Tax
2018
2019
2020
•
14.6
12.5
32.6
30%
30%
30%
4.4
3.7
9.8
Tax effects of:
Income not subject to tax
Depreciation
12.8
13.6
16.0
Penalties
2.0
3.2
0.0
Management fees dissallowed
2.0
3.0
4.0
Other expenses not deductible for tax purposes
5.6
1.3
2.6
Capital allowances
-20.0
-19.1
-20.0
Total income tax expense
6.8
5.7
12.4
Effective tax rate
46.6%
45.6%
38.0%
Source:
Company information
42
MTNView entire presentation