INVESTMENT GUIDE

Import Duty Drawback: Import duty charged on imported inputs used
for producing goods for export and goods sold to institutions like the
United Nations in Tanzania is refundable.
Manufacturing Under bond: All factories registered to manufacture
goods under bond for export purpose are exempted from import duty and
other taxes on inputs used to manufacture such goods.
Economic infrastructure: Road, railways, air and sea transport, port
facilities, telecommunication, banking & insurance.
Tourism: In tourism, losses carried forward. However, companies with
perpetual unrelieved losses for three consecutive years are charged 0.3%
of annual turnover. Imported 4WDs designed and built for tourist purposes
are exempted import duty, subject to satisfying criteria set by East African
Community Secretariat. Similarly, hotel equipment, which were engraved
or printed or marked with hotel logo imported by licensed hotel for its use
are exempted import duty.
Incentives for Foreign Investors
Investment Guarantees and Settlement of disputes: Investments in
Tanzania are guaranteed against nationalisation and expropriation. Tanzania
is a member of both the International centre for Settlement of investment
Disputes (ICSD) and Multilateral Investment Guarantee Agency (MIGA).
Other incentives for Foreign Direct Investments include: (i) Favourable
investment allowances and deductions(100%) on Industrial Buildings,
Plant and Machinery and on Agriculture expenditure; (ii) Deferment of
VAT payment on project capital assets; (iii) Import duty drawback on raw
materials; (iv) Zero rated VAT on manufactured exports; (v) Straight line
accelerated depreciation allowance on capital goods; (vi)Yearly appreciation
of unrecovered capital investment in mining; (vii) Five year carry- over of
all business losses against future profits; (viii) A reasonable corporate tax
rate (30%) and low withholding tax rates on dividends (10%)and on
42 | SIMIYU REGION INVESTMENT GUIDE