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The Investment law in Dar es Salaam, the economic heart of Tanzania, is guided by the Tanzania Investment Act, introduced in 1997 and the Tanzania Investment Centre (TIC), a primary agency of the Government to coordinate, encourage, promote and facilitate investment in the country. This law provides for incentives to both local and foreign investors, including tax exemptions, guarantees against nationalization and expropriation, and the ability to repatriate 100% of profits and dividends. However, it is a complex field and each investment case may have specific requirements and legal considerations.
Investors often require legal help to constitutionally form and register their business entity, ensure compliance with the investment act, secure intellectual property rights, draft and review contracts/agreements, apply and obtain necessary permits, and resolve business disputes. Moreover, a lawyer can offer advice on the legal and regulatory environment and help in understanding the investment climate and mitigate risks.
Salient points of the Investment Act include equal treatment of domestic and foreign investors, full foreign ownership of companies barring a few restricted sectors, initial minimum capital requirement of $100,000 for the foreign investor and $50,000 for domestic investors, and guarantees against expropriation. Additional statutes such as Land law, Labor law, Company Law, Environmental and Tax laws may also be applicable depending on the nature and extent of the investments.
Tanzania boasts a diverse range of opportunities for investment including agriculture, mining, tourism, telecommunications, manufacturing, and energy.
Under the Land Act of 1999, foreigners are prohibited from owning land in Tanzania. However, they can access land through a leasehold agreement or through partnership with a local entity.
Incentives such as tax holidays, import duty exemptions, and capital deduction allowances are available for certain investments. But, corporate tax, capital gains tax, and other indirect taxes like VAT and withholding taxes do apply. Detailed legal advice is necessary for tax planning.
TIC promotes, facilitates, and coordinates foreign as well as domestic investment. They offer a range of services to investors including assisting with various licenses and permits.
Yes, the law provides for dispute settlement through mechanisms including the International Centre for Settlement of Investment Disputes (ICSID) and the United Nations Commission on International Trade Law (UNCITRAL).
Useful resources include: Tanzania Investment Centre (TIC), Tanzania Revenue Authority (TRA), and the Business Registrations and Licensing Agency (BRELA). Legal insights can be found on local law firm websites.
Should you need legal assistance, identify a reputable law firm specializing in Investment Law in Tanzania. Engage a lawyer early in your planning process to ensure you understand the applicable laws, incentives and potential pitfalls. Prepare necessary documents and information for the lawyer to review, and openly discuss your investment objectives and concerns.
