Manufacturing industriesAgro-based industries, food processing and beverages, general processing and canning, textiles and leather goods, steel and metal engineering, cement and ceramics, electrical and electronic engineering, printing and publishing, pharmaceuticals, processing and canning of fish and other marine products, fishnets, packaging, bottles and glassware, paints and automotive engineering.
Petroleum and miningExploration and production of oil and gas, gold, diamonds, gemstones including tanzanite, base metals and a host of other minerals. Tanzanite is a precious gem found only in Tanzania.
ConstructionHotels and other tourist accommodation, residential houses, commercial buildings, warehouses and industrial sheds, estates and factory buildings, roads and economic infrastructure, schools, hospitals, water supply and other social infrastructure.
TransportRoad and rail haulage, coastal and inland water-ways shipping, air charters and domestic & regional airlines.
Transit tradeAll activities relating to transit of goods to neighbouring countries.
Computers and high-tech industriesActivities relating to the manufacture, assembly, marketing, servicing, utilisation, and human resources development in computers and information technology and related fields.
AgricultureExport oriented large scale production of cotton, coffee, cocoa, tea, sisal, tobacco, pyrethrum, coconuts, wheat, cashew nuts, cloves, palm oil, sugar, castor oil, gum Arabica, essential oils, fruits & vegetables, cardamom and other spices, fresh cut flowers etc..
Production of food crops such as rice, maize, barley and other cereals, beans, peas and pulses, plantains, cassava, potatoes etc.
Livestock productionHeifer breeding, dairy farming, beef ranching sheep and goat keeping, piggery and poultry raring, bee-keeping, domestic pets etc.
Natural resourcesForestry, fishing and fish farming, game cropping for commercial purposes, wildlife ranching.
TourismPeration of tourist hotels, lodges and related services, restaurants. Tour operators, photographic etc.
For purpose of incentives, investments are separated into two categories:
Lead SectorsAgriculture, Mining, Infrastructure ( e.g. Road Construction, Bridges, Airports, Generation of Electricity, Telecommunications, Water Services, Back up Services to Mining and similar).
Priority SectorsAir Aviation, Commercial Buildings, Commercial Development and Microfinance Banks, Export Processing, Geographical special development areas, Human Resources Development, Manufacturing, Natural Resources including fishing, Rehabilitation and Expansion, Radio and Television Broadcasting, Tourism and Tour Operations.
For obtaining TIC (Tanzania Investment Centre) Certificate, investments and project value should amount at least 100.000 dollars for projects belonging at 100% to Tanzanian people or whose major investor is a Local and 300.000 dollars for project belonging totally to Non-Tanzanian people or to a company formed following Tanzanian law.
Incentives for TIC Certificates holders
- The recognition of private property and protection against any non-commercial risks, Tanzania is an active member of MIGA (Multilateral Investment Guarantees Agency). Likewise Tanzania is also a member of The International Centre for Settlement of Investment Disputes (ICSID) so investors have unrestricted rights to International arbitration in case of dispute with government.
- Reduced import tariff on project capital items (5% import duty for investments in priority sectors and 0% for investment in Lead Sectors).
- Favourable investment allowances and deductions i.e. capital allowance (100%) on industrial buildings, plant and machinery and on agricultural expenditure.
- Deferment of VAT payment on project capital goods as defined in the tariff book and its relevant annexes deferred VAT to be shown on monthly return after which it will be extinguished unless it is discovered otherwise after audit.
- Imports Duty drawback on raw materials.
- Zero-rated VAT on Mining inputs, Agriculture inputs, goods manufactured for exports, foodstuff and tourism.
- Straight line accelerated depreciation allowance on capital goods.
- Up to five years carryover of all business losses against future profits.
- A reasonable corporate tax rates 30% and low withholding tax on loan interest payments.
- The unrestricted right to transfer outside the country 100% of foreign exchange earned profits and capital.
- The ease of obtaining other permits such as Residence/Work Permits, industrial licence, trading licence etc. through one-stop-shop operation of TIC.
- Automatic permits for employing an initial quota of 5 foreign nationals on the project holding Certificates of Incentives.
Mining and Backup Services for the Mining Indusrty
- Types of Licence offered:
- Prospecting Licence;
- Retention Licence;
- Special Mining Licence;
- Mining Licence;
- Gemstone Mining Licence.
- Applicable Law:
- the Mining Act, 1998;
- 3 Incentives Offered;
- zero rated duty on capital goods, spare-parts, vehicles and supplies until first production anniversary, thereafter reverts to 5%;
- no VAT on every quoted element.
- Capital Gain Tax:
- capital allowance 100% with an addition of 15% capital allowance;
- indefinite carryover of losses;
- corporation tax 30%.
- Areas of Investment:
- Mineral Exploration and Mining;
- Mining Services;
- value addition Activities;
- Minerals Trading.
- 3% all minerals except Diamonds which is 5%;
- no tax, Duty, fees or other fiscal import on dividends.
Incentives for Projects in Economic InfrastructureThe incentives are the same as the Mining Sector ones.
Incentives for Tourism SectorIn addition to the incentives provided to holders of Certificates of Incentives item in "ECONOMIC INFRASTRUCTURE" all essential Hotels facilities are treated as capital goods as spelt out in the Capital Goods schedule annexure.
Incentives for Agriculture Sector
- Zero-rated duty on capital goods, all farm implements, fertilizers, pesticades etc.;
- Zero-rated VAT on capital goods, all farm implements, fertilizers, pesticades etc.;
- Other incentives are the same as the Mining Sector ones.
Source: Tanzanian Embassy Website