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At Tan Biz Link we are ready to give a one-stop help to all Businesses and Investors who need to register their companies with The Tanzania Investment Center and get a Certificate of Incentives.
Our ethical, essential knowledge, professional, direct, and straightforward advice on all incentives including exemption on import duties.
The Tanzania Investment Centre 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 engage 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 required by other laws in order to establish and manage a business in Tanzania.
The Minimum investment value for a Projects should be at least US$ 100,000 for projects which are wholly owned by Tanzanian Citizen(s)
The minimum investment value of a project should be at least US$ 500,000 for projects which are wholly owned by foreign investors or if a joint venture
Section 17(1-8) of the Tanzania Investment Act, 1997 governs the issuance of Certificates of Incentive. The following documents are required: –
Import Duty Exemption For Investors Registered With Tanzania Investment Centre
Importing goods into Tanzania incurs a variety of taxes, including Import Duty, Excise Duty, and Value Added Tax. All of these taxes are levied on imported goods into the country.
This means that both domestic and foreign investors will have to pay the taxes levied on goods imported into Tanzania. Exemptions are granted to goods for a variety of reasons, including adhering to international norms for those with diplomatic status, removing the tax burden 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 goods are subject to this tax. The duty is typically calculated as an ad-valorem rate on the C.I.F value of goods imported into the country and is collected before goods leave the country and/or bonded warehouses. Tanzania has three entry points: the Dar es Salaam Port, the Julius Nyerere International Airport in Dar es Salaam, and the Kilimanjaro International Airport in Kilimanjaro.
Import Duty Exemption
Import Duty Exemption means that an importer whose Project has been registered with TIC will receive a 75 percent import duty exemption on deemed capital goods imported for use in the registered Project’s production of goods and services. This means that the investor will only have to pay 25% of the import duty on the imported goods, while the remaining 75% will be exempt.
Goods Eligible For Import Duty Exemption
Import duty is waived for deemed capital goods imported for a registered project by a TIC registered investor.
Deemed Capital Goods
These include items such as machinery, utility vehicles, and building materials. These items are eligible for duty-free importation through the Tanzania Investment Centre. It should be noted that building materials, with the exception of cement, steel reinforcement bars, roofing sheets, tiles, and air conditioners, are eligible for import duty exemption. Furthermore, spare parts for machinery or equipment are not exempt from import duty.
Gettingimport Duty Exemption
Beneficiaries of Import Duty Exemption should apply well in advance of the goods’ importation or purchase to avoid delays. The investor must apply for import duty exemption in writing to the Commissioner of Customs and Excise of the Tanzania Revenue Authority (TRA). A list of the deemed capital goods in excel format must be attached to the application letter for approval.
Lodging Import Duty Exemption Application
The application for import duty exemption for a TIC registered investor must be submitted to the TIC’s Executive Director, who will forward it to the Commissioner of Customs and Excise at the TRA’s Headquarters. The application and the list presented for approval will be scrutinized by the Commissioner.
Timeline For Acquiring Import Duty Exemption
The approval will be issued within two to three weeks after the application is submitted to TIC and forwarded to the Commissioner of Customs and Excise at TRA. The Commissioner will issue an approval letter containing a list of approved deemed capital goods.