Investment in Tanzania
Tanzania is endowed with many natural resources and investment opportunities. The Government of the United Republic of Tanzania has simplified investment regulations in order to attract investors from around the world. Investment in Tanzania is overseen by the Tanzania Investments Centre (TIC), a one-stop primary Government agency responsible for all investment matters.
The TIC is charged with the following functions:
- • Promoting investment activities in Tanzania;
- • Addressing administrative constraints facing local and foreign investors;
- • Assisting in the establishment and registration of enterprise processes;
- • Facilitating investors in obtaining necessary licenses, work permits, visas, approvals, facilities or services;
- • Assisting investors to secure investment sites and the establishment of Export Processing Zone (EPZ) projects especially in the Agricultural, Mining, Infrastructure, Fisheries and Tourism sectors;
- • Granting Certificates of Incentives, investment guarantees and registering technology agreement for all investments which are over and above US$ 300,000 and US$100,000 for foreign and local investments, respectively;
- • Providing and disseminating up to date information on existing investment opportunities, benefits and incentives available to investors: and
- • Facilitating investors to have smooth working relationships with Public and Private Sector bodies such as Tanzania Chambers of Commerce, Industry and Agriculture (TCCIA), Confederation of Tanzania Industries (CTI), Tanzania National Business Council (TNBC), Tanzania Private Sector Foundation (TPSF)
THE INCENTIVES AVAILABLE TO THE HOLDERS OF TIC CERTIFICATES OF INCENTIVES ARE:
- 1. The recognition of private property and protection against any non-commercial risks, Tanzania is an active member of MIGA (Multilateral Investment Guarantees Agency). Likewise, Tanzania is also a member of The International Centre for Settlement of Investment Disputes (ICSID) so investors have unrestricted rights to International arbitration in case of dispute with government.
- 2. Reduced import tariff on project capital items (5% import duty for investments in priority sectors and ZERO% for investment in Lead Sectors).
- 3. Favourable investment allowances and deductions i.e. capital allowance (100%) on industrial buildings, plant and machinery and on agricultural expenditure.
- 4. Deferment of VAT payment on project capital goods as defined in the tariff book and its relevant annexes deferred VAT to be shown on monthly return after which it will be extinguished unless it is discovered otherwise after audit.
- 5. Imports Duty drawback on raw materials.
- 6. Zero-rated VAT on Mining inputs, Agriculture inputs, goods manufactured for exports, foodstuff and tourism.
- 7. Straight line accelerated depreciation allowance on capital goods.
- 8. Up to five years carryover of all business losses against future profits.
- 9. A reasonable corporate tax rates 30% and low withholding tax on loan interest payments.
- 10. The unrestricted right to transfer outside the country 100% of foreign exchange earned profits and capital.
- 11. The ease of obtaining other permits such as Residence/Work Permits, industrial licence, trading licence etc. through one-stop-shop operation of TIC.
- 12. Automatic permits for employing an initial quota of 5 foreign nationals on the project holding Certificates of Incentives.
MINING AND BACKUP SERVICES TO THE MINING INDUSTRY INCENTIVE FOR PROJECTS IN ECONOMIC INFRASTRUCTURE
- • The incentives are the same as in mining sector
INCENTIVES FOR TOURISM SECTOR
- • In addition to the incentives provided to holders of Certificates of Incentives item in "ECONOMIC INFRASTRUCTURE" all essential Hotels facilities are treated as capital goods as spelt out in the Capital Goods schedule annexure.
INCENTIVES FOR AGRICULTURE SECTOR
- • Zero-rated duty on capital goods, all farm implements, fertilizers, pesticides etc
- • Zero-rated VAT on capital goods, all farm implements, fertilizers, pesticides etc
- • Other incentives as under item in "ECONOMIC INFRASTRUCTURE"
INCENTIVES OFFERED UNDER PETROLEUM EXPLORATION AND DEVELOPMENT BASIC DOCUMENTS REQUIRED BY THE TANZANIA INVESTMENT CENTRE (TIC) IN ORDER TO REGISTER YOUR INVESTMENT
NOTE: All applications have to be submitted directly to the TIC Registry or Reception in Dar es Salaam.
FACILITATION SERVICES AND FEES
- • TIC renders services to facilitate all Investors whether covered by the TIC Act (1997) or not.
- • Certificate of incentives US $750
- • Application Forms US $120
- • Other Services: 10% on top of what is charged by relevant Departments.
Trade in Tanzania
Tanzania attaches great importance to the role of trade in realizing National goals on poverty eradication through structural transformation of the economy with the private sector taking a leading role as an engine for national economic growth.
Tanzania offers a well-balanced and competitive package of fiscal trade incentives especially in the priority sectors such as manufacturing, agriculture, Tourism, petroleum, gas and Mining. For all these sectors, except petroleum and gas sectors, acquisition of all capital goods and parts are zero rated for import duty purposes and VAT thereon deferred.
Research expenses for agriculture are allowable for income tax purposes, while capital acquisitions are 100% expensed. You can also import duty-free all capital goods, spare parts, hotel facilities, explosive material for gas and oil exploration. Tanzania has also signed double taxation treaties with Denmark, India, Italy, Norway, Sweden, Kenya, Uganda, Zambia and Finland.
The Leading Investment Sectors include:
Agriculture and Agro-based Industries; Mining; Petroleum and Gas; Tourism, and Infrastructure.
The Priority Sectors include:
Energy, Manufacturing, Chemical Industries, Natural Resources (Fishing & Forestry), Construction and Real Estate Development, Management Consultancy, Human Resource Development (Hospitals, Health Centers, and Educational Facilities), Radio and Television Broadcasting and Export Oriented Projects.
Major import commodities include agricultural machinery, implement and pesticides, industrial raw materials, machinery and transportation equipment, petroleum and petroleum products, construction materials, consumer goods. The list is not exhaustive.
The principal export commodities include Minerals (gold, gemstones, diamonds, coal e.t.c.), coffee, cotton, cashew nuts, tea, sisal, tobacco, pyrethrum and cloves. The main imports are machinery, transport equipment, textiles, clothing, and petroleum products.
- • Tanzania’s major trading partners include: China, Germany, Japan, India, the European Union, United Arabic Emirates, United Kingdom, Kenya, Japan, India and South Africa.
- • Major commercial/trading cities include Dar es Salaam, Mwanza, Zanzibar, Arusha, Mbeya, Tanga, Kilimanjaro and Kigoma.
For trade statistics and further details on trade in Tanzania, please contact:
Trading in Tanzania
Ministry of Industry, Trade and Marketing,
P. O. Box 9503, Dar es Salaam, Tanzania.
The Executive Director,
Tanzania Investment Centre (TIC),
Plot No. 9A&B, Shaaban Robert Street
Telephone: +255 22 2116328 -31
Fax: +255 22 2118253