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The United Republic of Tanzania

Export Processing Zones Authority

Export Processing Zones Authority

INCENTIVES OFFERED

LUCRATIVE INVESTMENT INCENTIVES TO OUR INVESTORS

I. INVESTMENT INFORMATION

As an Investment Promotion Authority, EPZA provides reliable and relevant information to investors to assisting them in establishing their investments in Tanzania SEZs. Such information includes available investment opportunities; market information and other information related to SEZ investments.

II. FACILITATION SERVICES THROUGH OSCC

EPZA is well placed to offer a wide range of investor support services under one roof in the One Stop Service Center. The Centre provides services such as provision of guidance and comprehensive information about the establishment of SEZ investments in Tanzania; facilitates investors in obtaining factory space or serviced land in or outside the existing industrial/commercial parks; company registration process; administrative procedures in getting tax incentives and in obtaining visas and work permits. Also assists investors in logistics for clearing and forwarding of merchandise at the ports; provision of useful contacts of key public and private organizations;

identification of potential suppliers and partners for joint ventures as well as in post-

investment support.

III. TAX INCENTIVES

A. EPZ User License

  1. Subject to compliance with applicable conditions and procedures, accessing the export credit guarantee scheme
  2. Remission of customs duty, Value Added Tax and any other tax charged on raw materials and goods of capital nature related to the production in the Export processing Zones.
  3. Exemption from payment of corporate tax for an initial period of ten years and thereafter a corporate tax shall be charged at the rate specified in the Income Tax Act;
  4. Exemption from payment of withholding tax on rent, dividends and interests for the first ten years;
  5. Exemption from payment of all taxes and levies imposed by the local government authorities for products produced in the Export Processing Zones for a period of ten years;
  6. Exemption from pre-shipment or destination inspection requirements;
  7. Onsite customs inspection of goods in the Export processing zones
  8. Provision of business visa at the point of entry to key technical, management and training staff for a maximum of two months; thereafter the requirements to obtain a residence permit according to the Immigration Act, shall apply;
  9. Entitlement to an initial automatic immigrant quota of up to five persons during the startup period thereafter, any application for an extra person shall be submitted to the Authority which shall, in consultation with the Immigration Department, authorize any additional persons deemed necessary taking into consideration the availability of qualified Tanzanians, complexity of the technology employed by the investor and agreements reached with the investor
  10. Access to competitive, modern and reliable services available within the Special Economic Zones
  11. Unconditional transferability through any authorized dealer bank in freely convertible currency of:
    • Net profits or dividends attributable to the investment
    • Payments in respect of loan servicing where a foreign loan has been obtained
    • Royalties, fees and charges in respect of any technology transfer agreement
    • The remittance of proceeds (net of all taxes and other obligations) in the event of sale or liquidation of the business enterprises or any interest attributable to the investment
    • Payments of emoluments and other benefits to foreign personnel employed in Tanzania in connection with the business enterprise

C. SEZ and EPZ Developers License

  1. Exemption from payment of taxes and duties for machinery, equipment, heavy duty vehicles, building and construction materials and any other goods of capital nature to be used for purposes of development of SEZ infrastructure;
  2. Exemption from payment of corporate tax for an initial period of ten years and thereafter a corporate tax shall be charged at the rate specified in the Income Tax Act:
  3. Exemption from payment of withholding tax on rent, dividends and interest for the first ten years:
  4. Exemption from payment of property tax for the first ten years;
  5. Remission of customs duty, value added tax and any other tax payable in respect of importation of one administrative vehicle, ambulances, firefighting equipment fighting vehicles and up to two buses for employees’ transportation to and from SEZs;
  6. Exemption from payment of stamp duty on any instrument executed in or outside the SEZ relating to transfer, lease or hypothecation of any movable or immovable property in or situated within the SEZ or any document, certificate, instrument, report or record relating to any activity, action, operation, project, undertaking or venture in the SEZs: Remission of customs duty, Value Added Tax and any other tax payable in respect of importation of one administrative vehicle, ambulances, fire fighting equipment and vehicles and up to two buses for employees’ transportation to and from the Export Processing Zones;
  7. Treatment of goods destined into Export Economic Zones as transit cargo;
  8. Exemption from Value Added Tax on utility and wharfage charges;
  9. Entitlement to an initial automatic immigrant quota of up to five persons during the start up period and thereafter any application for an extra person shall be submitted to the Authority which shall, in consultation with the Immigration Department, and Commissioner for Labour authorize any additional persons deemed necessary taking into consideration the availability of qualified Tanzanians, complexity of the technology employed by the investor and agreements reached with the investor;
  10. Access to competitive, modern and reliable services available within the Export Processing Zones; and
  11. Unconditional transferability through any authorized dealer bank in freely convertible currency of
    • Net profits or dividends attributable to the investment;
    • Payments in respect of loan servicing where a foreign loan has been obtained;
    • Royalties, fees and charges in respect of any technology transfer agreement; (iv) the remittance of proceeds (net of all taxes and other obligations) in the event of sale or liquidation of the business enterprises or any interest attributable to the investment; and
    • payments of emoluments and other benefits to foreign personnel employed in Tanzania in connection with the business enterprise.

B. SEZ User License

  1. Remission of customs duty, value added tax and any other tax charged on raw materials and goods of capital nature related to the production in the Special Economic Zones
  2. Exemption from payment of withholding tax on interest on foreign sourced loan.
  3. Remission of customs duty, Value Added Tax and any other tax payable in respect of importation of one administrative vehicle, one ambulances, firefighting equipment, fire fighting vehicles and up to two buses for employees’ transportation to and from the Special Economic Zones.
  4. Exemption from pre-shipment or destination inspection requirements.
  5. On site customs inspection of goods within Special Economic Zones.
  6. Provision of business visa at the point of entry to key technical, management and training staff for a maximum of two months; thereafter the requirements to obtain a residence permit according to the Immigration Act shall apply;
  7. Entitlement to an initial automatic immigrant quota of up to five persons during the star up period and thereafter, any application for extra persons shall be submitted to the Authority which shall, in consultation with the Immigration Department, authorize any additional persons deemed necessary taking into consideration the availability of qualified Tanzanians, complexity of the technology employed by the investor and agreements reached with the investor;
  8. Exemption from payment of Value Added Tax on utility charges,
  9. Exemption from pre-shipment or destination inspection requirements;
  10. Onsite customs inspection of goods with Special Economic Zones; and
  11. Treatment of goods destined into Special Economic Zones as transit cargo

Tanzania Census 2022