Investment Incentives In Tanzania

Investment Incentives In Tanzania

The Tanzania Investment Act 1997 defines “incentives” as tax reliefs and concessional tax rates which may be accessed by an investor under the Income Tax Act, the Customs Tariff Act, the Tanzania Revenue Authority Act, the Value-Added Act, and any other law for the time being in force, and includes additional benefits that may be accessed by an investor under sections 19 and 20 of the Tanzania Investment Act 1997..

Fiscal and Non-Fiscal Incentives offered to Investors

• Access to various services related to permits, licenses and approvals in the TIC One Stop Facilitation Centre..
• The recognition of private property and protection against any non-commercial risks. Tanzania is an active member of the World Bank Foreign Investment Insurance wing, MIGA (Multilateral Investment Guarantees Agency). Likewise, Tanzania is a member of The International Centre for Settlement of Investment Disputes (ICSID) also a body affiliated to the World Bank.
• Zero percent (0%) Import Duty on Project Capital Goods, Computers and Computer Accessories, Raw Materials and Replacement Parts for Agriculture, Animal Husbandry and Fishing, Human and Livestock Pharmaceuticals and Medicaments, Motor Vehicle in Completely Knocked down (CKD) form and inputs for Manufacturing Pharmaceutical Products..
• Ten percent (10%) - Import Duty for Semi-processed/semi-finished goods)..
• 100% capital expenditure to Agricultural sector.
• The Income Tax Laws allows 50% Capital allowances in the first year of use for Plant and Machinery used in manufacturing processes and fixed in a factory, fish farming; or providing services to tourists and in a hotel. Thereafter, wear and tear rates apply to the remainder as below:
  - VAT Deferment granted on project capital Goods such as Plant & Machinery. However, the persons have to carry on an economic activity, keeps proper VAT records and file returns, has no Tax outstanding and VAT payable in respect of each unit of the Capital goods is twenty million Shillings or above. .

EAC Customs Management Act provides 0% import duty on Hotel Equipments

Any of the following goods engraved or printed or marked with the hotel logo imported by a licensed hotel for its use:

• Washing machines;
• Kitchen Ware;
• Cookers;
• Fridges and freezers
• Air Conditioning Systems;
• Cutlery;
• Televisions;
• Carpets;
• Furniture;
• Linen and Curtains;
• Gymnasium equipment

Import Duty drawback

• Import Duty drawback on raw materials used to produce goods for exports and deemed exports. Deemed exports cover locally produced or manufactured goods, which are sold to foreign agencies or entities operating in Tanzania, which are exempt from payment of import duties..
• Zero-rated VAT on exports.
• The right to transfer outside the country 100% of foreign exchange earned, profits and capital..