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Tax Registration Tanzania

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Tax Registration Tanzania

The Tanzania Investment Centre (TIC) is authorized to issue Certificates of Incentives under Part III, Section 17 (1-8) of the Tanzania Investment Act, 1997. Holders of an incentive certificate are eligible for a variety of investment incentives under the Investment Act of 1997.

Enterprises engaged in or planning to operate in the mining and petroleum sectors must adhere to their respective laws’ approval procedures (Mining Act 2010 & Petroleum Act 2015).

However, upon request, the Centre will assist all investors in obtaining the permissions and authorizations necessary by other laws in order to establish and manage a business in Tanzania. 

Economic Sectors

  • Agriculture and Livestock
  • Tourism
  • Manufacturing
  • Commercial Building
  • Transportation.
  • Broadcasting and Telecommunication
  • Natural Resources.
  • Financial Institutions
  • Energy
  • Human Resources Development
  • Economic Infrastructure

Local Investors

For initiatives that are completely owned by Tanzanian citizens, the minimum investment value should be at least US$ 100,000. (s)

Foreign Investors

For initiatives that are completely controlled by foreign investors or if a joint venture is formed, the minimum investment value of a project should be at least US$ 500,000.

Requirements

Section 17(1-8) of the Tanzania Investment Act, 1997 governs the issuance of Certificates of Incentive. Please provide the following documents: –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.

Import Duty Exemption For Investors Registered With Tanzania Investment Centre

Importing products into Tanzania is subject to a variety of taxes, including Import Duty, Excise Duty, and Value Added Tax. All of these tariffs are imposed on items that are brought into the nation.

This implies that both domestic and international investors will have to pay the taxes levied on items imported into Tanzania. Exemptions are given to goods for a variety of reasons, including adhering to international norms for those with diplomatic status, removing tax burdens from donor-funded projects, respecting Government commitments in legal agreements, implementing certain policies, such as support for NGOs or specific economic sectors, and to investors whose projects have been registered with the Tanzania Investment Center (TIC).

What is Import Duty?

Imported items are subject to this tax. The duty is often computed as an ad-valorem rate on the CIF value of goods imported into the nation, and it is collected before products leave the country’s entry point and/or bonded warehouses. The Dar es Salaam Port, Julius Nyerere International Airport in Dar es Salaam, and Kilimanjaro International Airport in Kilimanjaro are the three entrance ports into Tanzania.

Import Duty exemption

Import Duty Exemption indicates that an importer whose project has been registered with TIC will be eligible for a 75 percent duty exemption on considered capital items imported for use in the registered Project’s production of goods and services. This implies that the investor will only be responsible for paying 25% of the import duty due on the imported products, while the remaining 75% will be exempt.

Goods eligible for import duty exemption

For presumed capital items imported by a TIC registered investor for their registered project, import tax is waived.

Deemed Capital Goods

Equipment, utility vehicles, and construction supplies are examples of these items. Under the Tanzania Investment Centre, these commodities are eligible for duty-free importation. Building materials, with the exception of cement, steel reinforcing bars, roofing sheets, tiles, and air conditioners, are eligible for import tariff exemption. Furthermore, spare components for machinery or equipment are not exempt from import duties.

Getting Import Duty Exemption

To prevent delays, Import Duty Exemption recipients are recommended to apply well in advance of the products being imported or purchased. The investor must submit an application for import duty exemption in writing to the Tanzania Revenue Authority’s Commissioner of Customs and Excise (TRA). A list of the considered capital items in excel format must be provided to the application letter for approval.

Lodging Import Duty Exemption Application

An application for import duty exemption for a TIC registered investor should be sent to the TIC’s Executive Director, who would convey it to the TRA’s Commissioner of Customs and Excise. The application and the list given for approval will be scrutinized by the Commissioner.

Timeline for Acquiring Import Duty Exemption

The permission will be provided within two to three weeks after the application is submitted at TIC and delivered to the Commissioner of Customs and Excise at TRA. A list of considered capital items that have been granted for exemption will be included in the Commissioner’s approval letter.