Tanzania offers a well balanced package of incentives to investors to:-
-Compensate and reward them for their entrepreneur-ship.
-Match the changing needs of the country and their requirements.
-Channels investments in the direction most needed.
-Ensure growth with social equity.
Incentives available to holders with Tanzania Investment Centre (ITC) include the following: -
-Recognition of private property and protection against own commercial risks. Tanzania is a member of the multilateral investment Guarantee agency (MIGA) an affiliate of the World Bank and the international centre for settlement of Investment Disputes (ICSID). Any disputes arising between the Government and investors shall be settle amicably through negotiation.
-Investment allowances and deductions (100%) on industrial building, plant and machinery and agricultural expenditure, i.e. in computing his gains or profits for a particular year of income, a person or an investor is entitled to make deduction equal to the amount of his expenditure in that year.
-Total exemption from Sales Tax on imported capital assets.
-Reduced import tariffs on project capital items import duty on investment capital items in "lead" sector is zero rated while import duty of 5% is payable for capital items imports for investment in priority areas.
-Accelerated depreciation allowance on capital goods.
-Yearly appreciation of un-recovered capital investment in mining operations
-An indefinite carry-over of all business losses against future profits.
-A corporate tax rate of 30% and withholding tax rate of 10% on dividends.
-The right to remit 100% of foreign exchange earned, profits and capital.
-Assistance from TIC to obtain other permits such as residence/work permits, industrial license trading licence etc.
-Automatic permit of employing five foreign Nationals in the project holding certificate of incentives.
Incentives available to Exporters.
Value Added Tax:
Export of goods and services from the United Republic of Tanzania are zero rated from VAT. This is contained in Public Notice (3) of the Tanzania Revenue Authority issues in March 1998. According to the Notice, zero – rated supplies applies to: -

Exportable goods and taxable services from the United Republic of Tanzania provided evidence of exportation is produced to the satisfaction of the Commissioner of Customs.
The supply goods, including food and beverages for consumption or duty free sale on aircraft or ships on journeys to destinations outside the United Republic of Tanzania.

Beneficiaries under this facility are required to record every export sale in order to be able to benefit from the rating of exports and submit documentary proof of such exportation, such as Single Bills of Entry (SBE) Bill of Lading or Airways Bill or Railways Bill (Certificate of shipment) to Commissioner of Customs.

In so doing exporters will recover the VAT paid on their purchase and expenses incurred after the goods have been exported. This is expected to contribute towards the competitive position of Tanzania Exporters.
Duty Drawback Scheme
This provides refund of duties and sales taxes paid on imported raw materials used for export production.
In order to be able to get refund the claimants has to provide proof of export of products by providing such documents as Invoice, Bill Lading, Single Bill of Entry and export realisation slip.

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