Investment Incentives In Tanzania

The TIC One Stop Facilitation Centre offers a variety of services pertaining to permits, licenses, and approvals.

The protection of non-commercial risks and the acknowledgement of private property. Tanzania is a member of the World Bank's MIGA (Foreign Investment Guarantee Agency) (Multilateral Investment Guarantees Agency). Tanzania is also a member of the International Centre for Settlement of Investment Disputes (ICSID), a World Bank-affiliated body. 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 Vehicles in Completely Knocked Down (CKD) Form, and Inputs for Manufacturing Pharmaceutics

Import Duty of 10% (10%) on semi-processed/semi-finished items).

Excise duty paid on fuel purchased by qualified businesses is now refunded through a pay-and-refund arrangement.

The mining and agricultural sectors will receive 100% of capital investment.

Plant and Machinery used in manufacturing operations and fixed in a factory, fish farming; or offering services to visitors and in a hotel are all eligible for 50% capital allowances in the first year of use under the Income Tax Laws. Following that, wear and tear rates are applied to the remaining items as follows: VAT Project capital goods such as plant and machinery have been deferred. However, the individual must engage in economic activity, keep accurate VAT records, and file returns,

Having no outstanding taxes, and the VAT payable on each unit of capital goods is at least twenty million Shillings.

Drawback on import duties on raw materials used to manufacture goods for export and considered export. Deemed exports are items produced or manufactured in Tanzania that are sold to foreign agencies or businesses operating in Tanzania and are not subject to import tariffs.

VAT on exports is zero-rated.

The right to move 100 percent of earned foreign exchange, profits, and capital outside the country.

Automatic approval to hire up to five foreign nationals on the project who hold Certificates of Incentives.

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..