Trade and 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 Incentives Available To The Holders Of Tic Certificates Of Incentives Are:

• 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.
• Reduced import tariff on project capital items (5% import duty for investments in priority sectors and ZERO% for investment in Lead Sectors)
• Favourable investment allowances and deductions i.e. capital allowance (100%) on industrial buildings, plant and machinery and on agricultural expenditure.
• 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.
• Imports Duty drawback on raw materials.
• Zero-rated VAT on Mining inputs, Agriculture inputs, goods manufactured for exports, foodstuff and tourism
• Straight line accelerated depreciation allowance on capital goods.
• Up to five years carryover of all business losses against future profits.
• Up to five years carryover of all business losses against future profits.
• A reasonable corporate tax rates 30% and low withholding tax on loan interest payments.
• The unrestricted right to transfer outside the country 100% of foreign exchange earned profits and capital.
• The ease of obtaining other permits such as Residence/Work Permits, industrial licence, trading licence etc. through one-stop-shop operation of TIC.
• Automatic permits for employing an initial quota of 5 foreign nationals on the project holding Certificates of Incentives.