EPZ Registration

The Export Processing Zone Authority (EPZA) is an Autonomous Government Agency that reports to the Ministry of Industry and Trade and is governed by a Board of Directors. EPZA was established as a result of a 2006 amendment to the Export Processing Zones (EPZ) Act to oversee the EPZ program's implementation. Following the revision of the EPZ and SEZ laws in 2011, which made EPZ part of the SEZ program, EPZA's responsibilities were expanded in 2011 to enable EPZA to oversee the Special Economic Zones (SEZ) Program.

Other EPZA functions include land acquisition for investment and ownership of Special Economic Zones on Tanzania's mainland. Creating infrastructure for EPZs and SEZs, Issuing investment licenses for EPZs and SEZs, Provision of business services to EPZ and SEZ investors prior to and after license acquisition, promotion of investment opportunities within Special Economic Zones, administrative procedures for obtaining EPZ and SEZ investment incentives In addition, the Authority serves as a one-stop shop for all prospective and existing investors.

OBJECTIVES OF EPZA

ELIGIBILITY CRITERIA FOR EPZ LICENSING

• New Investement
• Local investors must have a minimum annual export turnover of $100,000, while foreign investors must have a minimum annual export turnover of $500,000.
• At least 80% of the goods produced must be exported.

TAX INCENTIVES

• Access to the export credit guarantee scheme is subject to compliance with applicable conditions and procedures.
• Remission of customs duty, Value Added Tax, and any other tax levied on raw materials and capital goods produced in Export Processing Zones.
• Exemption from corporate tax for the first ten years, after which a corporate tax at the rate specified in the Income Tax Act will be charged;
• Exemption from withholding tax on rent, dividends, and interests for the first ten years;
• Exemption from all taxes and levies imposed by local government authorities for products produced in the Export Processing Zones for a period of ten years;
• Exemption from pre-shipment tax
• Customs inspection of goods on-site in export processing zones
• Provision of a business visa at the point of entry to key technical, management, and training staff for a maximum of two months; thereafter, the requirements for obtaining a residence permit under the Immigration Act shall apply;
• entitlement to an initial automatic immigrant quota of up to five people during the startup period; thereafter, any application for an extra person shall be submitted to the Authority, which shall, in consultation with the Immigration Department,
• Access to competitive, modern, and dependable services within Special Economic Zones
• Unconditional transferability in freely convertible currency through any authorized dealer bank of:
  • Net profits or dividends attributable to the investment
  • Payments in respect of loan servicing where a foreign loan has been obtained
  • Royalties, fees, and charges in respect of any technology transfer agreement
  • The remittance of proceeds (net of all taxes and other obligations) in the event of sale or liquidation of the business enterprises or any interest attrition