To set up business in Tanzania the following contacts, general approvals, permits and licences are required. However for those investors who pass through Tanzania Investment Centre facilitation of these requirements will be processed by the Centre.

COMPANY REGISTRATION

Principal forms for business organisation are for sole proprietors, partnerships, joint ventures, incorporated company and registered branch of overseas companies. All companies must be registered in Dar-es-Salaam.

Registrar of Companies

The contact address of the Registrar of Companies is as follows: Co-operative Building, 10^th Floor, Lumumba Street, P.O. Box 9393, Dar es Salaam. Tel: (+255-51) 180385, 180113, 180371 and 188344

This is the first contact an investor makes in registering business in Tanzania. Private companies must have a minimum of two shareholders.

The application process varies depending on the entity being registered.

Apply in writting directly to the Registrar of Companies.

Prepare Memorandum and Articles of Association once the trade name has been accepted. Lawyers are available to assist investors. Several forms are required to be filled and submitted to the Registrar. These include application, list of directors, details of nominal shares, particulars of directors or managers and notice of situation of office.

Provide a certified copy of the company charter, Memorandum & Articles of Association from the country of origin and information provided above.

To register Trade/Service Marks:

Pay registration fees and place the advertisement in the Official Gazette.

REGISTRATION WITH INCOME TAX DEPARTMENT OF TANZANIA REVENUE AUTHORITY (TRA)

Once a business has been registered with the Registrar of Companies it is required to register with the nearest Tanzania Revenue Authority (TRA) office. A Tax File Number is established after registration formalities have been completed.

The contact address of the Commissioner is as follows: Income Tax Department, Tanzania Revenue Authority, Mapato House, Sokoine Drive, P.O. Box 9131, Dar es Salaam. Tel: (+255-51) 29533 and 38811.   Fax: (+255-51) 119595

Personal Income Taxes:

Tanzania uses a progressive personal income tax for monthly income over Tshs.30,000. Marginal tax rates peak at 35 percent assessed in monthly income. All employers are required to deduct income tax for the Government from employees.

Housing Levy:

A Housing Levy of four percent (4%) of gross emoluments is collected by the TRA.

Corporate Income Tax:

Once a file number has been established, the business is expected to complete Provisional Tax Return forms. The provisional tax return must be submitted within three months of the beginning accounting date; the estimate of the tax is payable quarterly.

A Final Tax Return form must be submitted ‘within a period not exceeding nine months from the date of the final accounts of business’.

The corporate income tax rate is 35 percent (35%) for both resident and non-resident companies. (This is not the rate applicable to TIC certificate holders).

Capital/Investment Depreciation:

There are three rates of wear and tear deductions allowed depending on the type of equipment: Class 1 – tractors, combine harvesters, and heavy, self-propelled equipment – is allowed a 37.5% annual deduction; Class II – light, self-propelled equipment 25% and Class III e.g. office furniture etc. 12.5% p.a.

Withholding Tax is not applicable to TIC Certificate holders. Withholding taxes are levied on several kinds of transactions as follows:

FOR NON-CERTIFICATE HOLDERS (%)

Capital Gains Tax:

The Capital Gains Tax has been abolished. The Specified Building Tax, Training Levy, and Estate Duty have also been repealed.

Double Taxation Treaties:

Double taxation treaties have been signed with Canada, Denmark, Finland, India, Italy, United Kingdom, Norway, Sweden, and Zambia.

Tanzania is also in the process of negotiating treaties with several other countries including Belgium, Burundi, Iran, Lebanon, Malaysia, Mauritius, Pakistan, Rwanda, and Uganda.

VAT, Sales and Excise Taxes:

Contact Address: Commissioner of VAT, Tanzania Revenue Authority, Lumumba and Sykes Streets (Kipata Area), P.O. Box 1629, DAR ES SALAAM. Tel: (255-51)  182982 or 182898   Fax: (255-51) 37222

There are currently several types of transaction taxes in Tanzania which can be primarily segmented into three categories: sales tax; stamp duty, and excise duty. These taxes have been replaced by VAT of 20% flat rate starting July 1998 for all Businesses with annual turnover of Tshs 20 million (US$ 30,000 Dec 1998) and above.

Registration Process:

Any business which is manufacturing or selling goods on which VAT or Sales Tax is payable must register with the TRA. This registration should occur prior to commencement of operations. TRA will physically inspect the site before issuing a VAT or Sales Tax number.

Once operational, business are required to submit ‘Monthly Sales Returns’ along with a payment to the nearest TRA office not later than the 15^th day of the following month.

VAT and Sales Taxes are applicable in both goods and services.

Registered Dealer Certificates (RDC):

Manufacturing firms can apply for an exemption on Sales Tax after being registered under RDC scheme. In addition the RDC allows manufacturers to avoid double taxation.

Excise Taxes:

Excise taxes are assessed on cigarettes, and a few other items that are considered luxuries. There are both ad valorem and specific rates depending on the product.

Excise duty is also levied on certain items at specified rates.

Important contact addresses relative to Import/Export business are as follows:

1. Customs Department, Tanzania Revenue Authority, Sokoine Drive, Mapato House, P.O. Box 9053, Dar es Salaam. Tel: (255-51) 111615, 38067. Fax: (255-51) 116640 Contact Person: Commissioner for Customs & Excise Department. 1. Customs Department, Tanzania Revenue Authority, Sokoine Drive, Mapato House, P.O. Box 9053, Dar es Salaam. Tel: (255-51) 111615, 38067. Fax: (255-51) 116640 Contact Person: Commissioner for Customs & Excise Department. 1. Customs Department, Tanzania Revenue Authority, Sokoine Drive, Mapato House, P.O. Box 9053, Dar es Salaam. Tel: (255-51) 111615, 38067. Fax: (255-51) 116640 Contact Person: Commissioner for Customs & Excise Department.

2. Tanzania Harbours Authority (THA), P.O. Box 9184, Dar es Salaam. Tel: (255-51) 112872, Fax: (255-51) 113938. Contact Person: Director General 2. Tanzania Harbours Authority (THA), P.O. Box 9184, Dar es Salaam. Tel: (255-51) 112872, Fax: (255-51) 113938. Contact Person: Director General 2. Tanzania Harbours Authority (THA), P.O. Box 9184, Dar es Salaam. Tel: (255-51) 112872, Fax: (255-51) 113938. Contact Person: Director General

3. Tanzania Central Freight Bureau (TCFB), P.O. Box 3098, Dar es Salaam. Tel: (255-51) 114174, 115579, 35081 Fax: (255-51) 114174. Contact Person: Director General 3. Tanzania Central Freight Bureau (TCFB), P.O. Box 3098, Dar es Salaam. Tel: (255-51) 114174, 115579, 35081 Fax: (255-51) 114174. Contact Person: Director General 3. Tanzania Central Freight Bureau (TCFB), P.O. Box 3098, Dar es Salaam. Tel: (255-51) 114174, 115579, 35081 Fax: (255-51) 114174. Contact Person: Director General

Import Process:

Steps involved in importing goods into Tanzania are as follows:-

FACTORY INSPECTION

Under the Factories Ordinance of 1950, the Factories Inspectorate (F1) is responsible for ensuring the safety and health of all employees.

Important contact address: Chief Inspector of Factories, Ministry of Labour and Youth Development, P.O. Box 9014, Dar es Salaam. Tel: (255-51) 180447 and 111511

Application Process:

There is a two-step application process for investors who are building their own factories. A "Notice of Building Operations or Works of Engineering Construction" must be submitted not later than seven days after the beginning of any construction. This form is available at no cost.

Once the factory is constructed and ready to begin operations, investors are required to complete form LDF 103. There is a small fee for the form. Upon receiving the application, the Factory Inspector will physically inspect the facility.