TIC Certificate Of Incentives

TIC Certificate Of Incentives

The Tanzania Investment Centre grants Certificates of Incentives under authority conferred upon it by Part III, Section 17 (1-8) of Tanzania Investment Act, 1997. Holders of certificate of incentives are entitled to various investment incentives as stipulated in the Investment Act, 1997
Enterprises engaging or intending to engage in Mining and Petroleum Sectors shall follow the approval process contained in their respective laws (Mining Act 2010 & Petroleum Act 2015).
However, the Centre upon request shall assist all investors to obtain permits and authorization required by other laws to set up and operate investment in Tanzania.

 

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Requirements

Issuance of Certificate of incentives is guided by the section 17(1-8) of Tanzania Investment Act, 1997. The following documents should be submitted¬: -

• A certified copy of the Certificate of company Incorporation
• A copy of the company’s Memorandum and Articles of Association.
• A dully filled TIC application forms which are issued by the Centre
• Project business plan
• Evidence of sufficient finance capital available to implement the project
• Evidence of project location
• Company Board Resolution to register the project with TIC.
• An overall covering letter to which all the above are attached.

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Import Duty Exemption For Investors Registered With Tanzania Investment Centre

Importation of goods in Tanzania attracts various taxes which include Import Duty, Excise Duty and Value Added Tax. All these taxes are levied on goods imported in the country.
This means that investors both local and foreign will have to incur the expenses of paying the taxes imposed on importation of goods in Tanzania. However, exemptions are granted to goods for a variety of reasons, such as to adhere to international norms for those with diplomatic status, to remove tax burden from donor funded projects, to respect Government commitments in legal agreements, to implement certain policies such as support for NGOs or for certain economic sectors and to investors whose projects have been registered with the Tanzania Investment Center (TIC).

What is Import Duty?

This is a tax levied on imported goods. The duty is usually calculated as an ad-valorem rate on C.I.F value of goods imported into the country, and is collected before goods leave the entry point into the country and/or bonded warehouses. The entry points in Tanzania are the Dar es Salaam Port, Julius Nyerere International Airport in Dar es Salaam and Kilimanjaro International Airport in Kilimanjaro.

Import Duty exemption

Import Duty exemption means that the importer whose Project has been registered with TIC will get 75% import duty exemption on the deemed capital goods imported that are to be used for production of goods and services in the registered Project. This means, the investor will only be required to pay 25% of the import duty chargeable on the imported goods and the remaining 75% will be exempted.

Goods eligible for import duty exemption

Import duty is exempted for deemed capital goods imported by a TIC registered investor for their registered project.

Deemed Capital Goods

These are goods such as equipment, utility vehicles and building materials. These goods are legible for import duty exemption under the Tanzania Investment Centre. It should be noted that building materials are legible for import duty exemption excluding cement, steel reinforcement Bars, Roofing sheets, tiles and air conditioners. Moreover, spare parts to machineries or equipment are excluded from import duty exemption.

GettingImport Duty Exemption

Beneficiaries of Import Duty exemption are advised to apply well in advance of importation or purchase of the goods to avoid delays. The investor shall make an application for import duty exemption via a letter addressed to the Commissioner of Customs& Excise of The Tanzania Revenue Authority (TRA). In tandem with the application letter, a list of the deemed capital goods in excel format shall be attached for approval.

Lodging Import Duty Exemption Application

The application for import duty exemption for a TIC registered investor shall be lodged with the Executive Director of TIC who will forward the same to the Commissioner of Customs & Excise at the TRA’s Headquarters. The Commissioner will scrutinize the application and the list presented for approval.

Timeline for Acquiring Import Duty Exemption

Once the application is lodged at TIC and forwarded to the Commissioner of Customs & Excise at TRA, the approval will be issued within two to three weeks. The Commissioner will issue an approval letter with a list of deemed capital goods that have been approved for exemption.