Tanzania Investment Centre. General overview

Introduction.

The Tanzania Investment Centre (TIC) is the primary government agency tasked with promoting, coordinating and facilitating investments in Tanzania. As the first point of contact for potential investors, Tanzania Investment Centre (TIC) plays a crucial role in streamlining the investment process, making it more accessible for both local and foreign investors. By law, all government departments and agencies are required to fully cooperate with the Tanzania Investment Centre (TIC), ensuring that it can efficiently fulfill its mandate of fostering a favourable investment climate in Tanzania.

Services Offered by Tanzania Investment Centre (TIC)

The cornerstone of Tanzania Investment Centre (TIC) operations is its ‘One-Stop Facilitation Centre’, which offers comprehensive services to investors with projects that meet specific capital thresholds; a minimum of United States Dollars One Hundred Thousand ($100,000) for local investors projects which are wholly owned by Tanzanian Citizen(s) and United States Dollars Five Hundred Thousand ($500,000) for foreign investors projects which are wholly owned by foreign investors or if a joint venture. This centre simplifies the bureaucratic process, helping investors navigate regulatory requirements with ease.

Services provided by the One-Stop Centre include: –

1. Incentives access: Offering various fiscal and non-fiscal benefits to eligible investors.
2. Company registration: Guiding investors through the legal steps of forming a business entity in Tanzania.
3. Business licenses: Assisting in the acquisition of necessary licenses to operate within the country.
4. Taxpayer Identification Number (TIN) registration: Facilitating the registration process for both companies and individuals, as required by Tanzanian tax law.
5. Land acquisition: Supporting investors in securing land for their ventures.
6. Work permits and resident permits: Streamlining the application process for foreign employees and investors.
7. Environmental and health certifications: Providing access to essential certifications such as Environmental Impact Assessments and approvals from the Tanzania Food and Drugs Authority.

Sectors Under Tanzania Investment Centre (TIC)

Tanzania Investment Centre (TIC) has a particular focus on mining, petroleum and Public-Private Partnerships (PPP). While general investments are handled by the One-Stop Centre, mining and petroleum licenses are issued by the Ministry of Energy and Minerals (MEM). Tanzania Investment Centre (TIC) collaborates closely with this ministry to ensure that investors in these high-value sectors are efficiently served.

Projects that involve PPPs, which often require cooperation between the public and private sectors, are coordinated through the Tanzania Investment Centre (TIC) and the Ministry of Finance. These projects, typically large-scale and infrastructure-heavy, benefit from the Tanzania Investment Centre’s expert facilitation and ability to navigate the complexities of such partnerships.

Types of Investment Incentives

One of Tanzania Investment Centre’s key function is to provide access to investment incentives aimed at making Tanzania an attractive destination for investors. These incentives are categorized into fiscal and non-fiscal types.

1. Fiscal incentives include: –
   1. Import duty exemptions: On capital goods used for investment projects.
   2. Value Added Tax (VAT) exemptions: On project capital or deemed capital goods.

• Import Duty Drawback Scheme: A mechanism that allows investors to reclaim duties paid on imported goods that are later exported.

1. Non-fiscal incentives include: –
   1. Immigration quotas: Offering up to five positions for expatriates in key roles.
   2. Profit and dividend repatriation: Investors are guaranteed the ability to transfer net profits or dividends from their investment outside the country.

• Loan repayments and remittances: Tanzania Investment Centre (TIC) facilitates the remittance of payments related to foreign loans and other financial obligations.

1. Royalty and fee payments: Investors can remit payments related to royalty fees, emoluments and other benefits owed to foreign personnel.

In addition to these standard incentives, Tanzania Investment Centre (TIC) offers special incentives for strategic investors. Investors with projects exceeding United States Dollars Twenty Million ($20 million) that provide significant socio-economic benefits to Tanzania are eligible for further incentives, ensuring that their ventures not only succeed but also contribute meaningfully to the local economy and society.

How to Apply for Certificate of Incentives

Issuance of Certificate of incentives is guided by the section 17(1-8) of Tanzania Investment Act whereby the following documents in pdf format should be submitted through subscribing in Tanzania Investment Centre (TIC) project registration portal https://onestopshop.tic.go.tz/

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

Note:

The Payment of facilitation fee of United States Dollars One Thousand One Hundred (US$ 1100) is charged

Tax Services and Exemptions

Tanzania Investment Centre (TIC) plays a crucial role in facilitating tax services for investors in accordance with the Tanzania Investment Act and the Income Tax Act. Investors are aided with registering for Tax Identification Numbers (TIN), which are mandatory for both companies and individuals conducting business in Tanzania.

For companies, Tanzania Investment Centre (TIC) ensures that both the entity and its directors are properly registered for Tax Identification Numbers (TIN), a process that is free of charge. Individuals also require personal Tax Identification Number (TIN) certificates, which are essential when registering businesses online through the Business Registrations and Licensing Agency (BRELA). Furthermore, Tanzania Investment Centre (TIC) assists investors in navigating the tax exemption process, where they can benefit from import duty and Value Added Tax (VAT) exemptions on capital goods.

Conclusion

The Tanzania Investment Centre (TIC) is at the heart of Tanzania’s efforts to attract and retain investment, both local and foreign. By providing a One-Stop Facilitation Centre, Tanzania Investment Centre (TIC) significantly reduces the bureaucratic challenges investors typically face, making Tanzania a more appealing investment destination. With incentives that span fiscal and non-fiscal categories, coupled with expert facilitation in key sectors like mining, petroleum, and PPPs, Tanzania Investment Centre (TIC) is instrumental in driving economic growth in Tanzania.

Should you require assistance, Kindly reach out to our team directly at www.gerpatsolutions.co.tz info@gerpatsolutions.co.tz, Mob: +255 742 826 955