A foreign investor who intends to invest in Tanzania is entitled to apply to the Tanzanian Investment Centre (TIC) for an investment certificate if, inter alia, the amount to be invested by the foreign investor is at least US$300.000 or the equivalent in any currency.
A business enterprise in respect of which a certificate is granted under the Act is entitled to the benefits which are applicable to that enterprise under the provisions of the Income Tax Act, the Customs Tariff Act, the VAT Act or of any other written law for the time being in force.
Certificate of incentives guarantees:
- against expropriation;
- fiscal stability for a 5 year period i.e. protection against adverse changes in taxation legislation;
- the right to transfer outside the country 100% of foreign exchange earned, profits and capital;
- automatic permission during the start-up period to employ 5 foreign nationals on the project holding certificates of incentives;
- assistance in processing of registration, permits and licenses by various Government agencies and in resolving any areas of difference with such agencies; and
- assistance with allocation of land and issue of derivative titles.
Tanzania has Bilateral Investment Treaties with Canada, Denmark, Finland, Germany, Italy, Netherlands, Sweden, Switzerland United Kingdom.