|
NATIONAL
INVESTMENT (PROMOTION AND PROTECTION) ACT NO.10 1990
NATIONAL INVESTMENT (PROMOTION AND PROTECTION) ACT NO.10 1990
Published in
the Government Gazette of the United Republic
of Tanzania:
No.26, Vol.71,
dated 29th June 1990, Acts Supplement No.3
of 1990.
NATIONAL
INVESTMENT (PROMOTION AND PROTECTION) ACT, 1990
ARRANGEMENT
OF SECTIONS
Section
Title
PART I
PRELIMINARY
1. Short title
and commencement
2. Interpretations
3. Application
PART II
THE INVESTMENT
PROMOTION CENTRE
4. Establishment
5. Objectives and functions
of the Centre
6. Appointment of the
Director General
7. Appointment of other
staff
8. Fees, receipts and
funds
PART III
APPLICATION
FOR APPROVAL OF ENTERPRISE AND AREAS OF INVESTMENT
9. Investment
in new enterprises
10. Application for a
Certificate of Approval by nationals
11. Application
for a Certificate of Approval by
oreign nationals.
12. Procedure with respect
to applications.
13. Consideration of
applications
14. Issue of Certificate
of Approval
15. Transfer of Certificate
16. Amendment of Certificate
17. Suspension and Cancellation
18. Records of application
and Certificates
19. Area of investments
PART IV
INVESTMENT
INCENTIVES
20. Benefits
to approved enterprise
21. Tax on profit
22. Withholding tax on
dividends
23. Exemption from import
duties
24. Exemption from sales
tax
25. Foreign exchange
earning enterprises to retain foreign
exchange
earning
26. Land use by investor
27. Designated Special
Growth Area.
PART V
PROTECTION
OF INVESTMENT, ARBITRATION AND TRANSFER OF
FOREIGN CURRENCY
28. Acquisition
and compensation
29. Arbitration
30. Transfer of Foreign
currency
31. Definition of foreign
assets
32. Rights of holder
of registered certificate or licence.
PART VI
TRANSITIONAL
AND MISCELLANEOUS PROVISIONS
33. Existing
enterprises with foreign investment
34. Investment in existing
enterprises by foreign nationals
35. Investment
by foreign nationals in existing enterprises in reserve
areas
36. Rehabilitation or
expansion of approved enterprise
37. Offences
38. Accounts and records
of enterprises
39. Information and inspection
40. Guidelines
41. Amendments to existing
enactments
42. Repeal Acts, 1963,
No.40
43. Act to be supplemented
44. Regulations
45. Official Secrecy
THE UNITED
REPUBLIC OF TANZANIA
An Act
to establish the Investment Promotion Centre, to define
its functions and powers in relation to
the promotion, co-ordination, regulation
and monitoring of foreign and local
investments, to repeal the Foreign Investment
Protection Acts,
1963 and for matters
incidental thereto and connected therewith.
WHEREAS the
Government of the United Republic, has embarked on a deliberate
Programme of Promoting rapid economic development and growth:
AND WHEREAS
Tanzania is endowed with abundant natural resources which
are yet to be exploited:
AND WHEREAS,
the Government, recognizing that private, foreign and
local investments have played and will continue
to play an important role in the development of the economy,
has promulgated the National Investment Promotion Policy:
AND WHEREAS
it is deemed necessary and appropriate for a clear institutional
framework to be established for investors to operate
within, and to provide them with incentives
and guarantees in order to encourage investments
particularly in areas of national priority:
AND WHEREAS
it is necessary, in order to give effect
to the policy, to enact a more comprehensive
legislation to govern investments in all areas:
NOW THEREFORE
it is hereby enacted by the Parliament of
the United Republic as follows:
PART I
PRELIMINARY
1. This
Act may be cited as the National Investment (Promotion
and Protection) Act, 1990 and shall come into operation
on such date as the Minister may, by order published
in the Gazette appoint.
2. In this
Act, unless the context other requires :-
"Advisory Council"
means an Advisory council established under section
6B;
"application"
means application for a Certificate of Approval or amendment
thereof;
"approved
enterprise" means an enterprise,
whether a new enterprise or the rehabilitation
or expansion of an existing enterprise,
in respect of which a Certificate of Approval
is granted by the Centre;
"Capital"
means currency, negotiable instruments,
plant, machinery, equipment, buildings, spare parts,
raw materials and other business assets;
"Centre" means
the Investment Promotion Centre established under Section 4;
"Certificate"
means a Certificate of Approval granted
by the Centre pursuant to this Act;
"Certificate
of Approval" means a certificate granted
by the Centre pursuant to this Act;
"Committee"
means the Committee established under section 6A;
"Director"
means the person appointed to be Director
General under section 6;
"effective
date" means date of commencement of this Act;
"enterprise"
means any undertaking carrying on business whether in
the field of agriculture, industry, commerce,
services or otherwise;
"existing enterprise"
means an enterprise existing immediately prior to the
commencement of this Act;
"foreign
capital" means foreign convertible
currency or negotiable instruments, plant, machinery,
equipment, buildings, spareparts, raw materials, and other
business assets obtained by the expenditure of foreign
convertible currency or negotiable
instruments demonstrated
in foreign convertible currency and includes
retained earnings and unremitted dividends;
"foreign national"
means :-
(a) a person
who is not a citizen of the United Republic;
(b) a
company or other body co-operate incorporated outside the
United Republic;
(c) a
company incorporated within the United Republic in respect of which
the Minister is satisfied:-
(i) that the
majority of the issued share capital is beneficially owned by foreign
nationals within the meaning of this definition; and
(ii) that
there are special reasons why the company should
be
treated as a foreign
national for purposes of this Act;
"Investment"
means contribution of capital or foreign capital by an investor
to a new enterprise or to expansion or rehabilitation of an existing
enterprise or a new enterprise;
"Local investment"
means an investment by a national investor;
"Joint venture"
means an association, whether incorporated or
unincorporated, between foreign investor and local cooperative or
parastatals organisations, foreign investors and local
private investors, domestic private investors and local
parastatals and or cooperative organisations, for
the purpose of making an investment jointly
in an enterprise in respect of which
an application may be made for a Certificate of Approval;
"Minister"
means the Minister for the time being responsible for economic
policy and planning;
"National"
means an investor who is:
(a) a citizen
of the United Republic;
(b) a
company incorporated within the United Republic in respect of which
the Centre is satisfied that all or the majority of the issued share
capital is beneficially owned by citizen of the United Republic;
"New
enterprise" means an enterprise established
after the effective date and shall include
rehabilitation or expansion whose cost is ninety
percent or more of the appraised value of the existing enterprise.
"operative
date" means
(a) with
respect to a new enterprise, the
date on which production or provision of services
from the approved enterprise commences; or
(b) with
respect to rehabilitations or expansion of an existing enterprise
or a new enterprise, the date of completion
of the rehabilitation or expansion of the enterprise as specified
in the Certificate of Approval in respect of the enterprise , as
amended
from time to time;
"Parastatal
means a statutory or public corporation owned by the Government
of a company in which all or more than fifty percent
of the issued share capital is
beneficially owned by the Government;
"Prescribed"
means prescribed by regulations made under this Act;
"Prescribed
form" means any form prescribed by the Centre
by regulations or, where no form has been so prescribed in
relation to any matter, means a form approved by the Centre;
"Private investment"
means an investment by a private investor;
"Private Investor"
means a national or foreign national
who proposes to make or has made a private investment in the Republic
and includes a private investor in a joint venture;
"Regulations"
means regulations made under this Act;
Application
3. This
Act shall apply in relation to
foreign and local investment but shall not
apply in relation to investment in petroleum
and minerals which are governed by
the Petroleum (Exploration and Production) Act,
1980 and the Mining Act, 1979
respectively.
Acts, 1980
No. 27 Acts, 1979 No.17
PART II
THE INVESTMENT
PROMOTION CENTRE
Establishment
of the Centre Act No. 10 of 1992
4.-(1) There
is hereby established a Centre to be known as the Investment
Promotion Centre.
(2) The Centre
shall be composed of the Director General and the Investment Promotion
Committee established under Section 6A
(3) The Centre shall
be an autonomous organ of Government.
Objectives and functions
of the Centre
5.-(1) The
Centre shall be the focal point for the implementation of the
National Investment Policy and in particular it shall be responsible
for the promotion, coordination regulation
and monitoring of local and foreign investments in Tanzania.
(2) Without
prejudice to the generality of subsection (1)
the functions of the Centre shall be :-
(a) To
identify and advise potential investor on possible areas of
investment and to provide them with available
feasibility reports and market studies,
(b) To
collect, collate, analyse and disseminate
information about investment opportunities
and sources of investment capital, and advise
upon request, on the availability, choice or suitability to partners
in joint venture projects;
(c) To
assist where appropriate in the identification of local
partner for foreign investors;
(d) To
organise promotional activities such as
seminars and exhibitions, both in Tanzania and
abroad, in order to stimulate local and foreign investments;
(e) To Liaise
with Tanzania Missions abroad in order to publicise Tanzania's information
on investment opportunities in Tanzania;
(f) To
act as a link between local inventors
and possible investors or manufactures;
(g) To
grant certificate of approval
for investment in enterprises in accordance with the
provision of this Act;
(h) To
conduct, or arrange policy and technical appraisal of investment
proposals submitted to it by investors;
(i) To co-ordinate
private investment activities in Tanzania.
(j) To
keep under review, and advise the Government periodically on policies,
strategies and procedures relating to the promotion and regulation
of investments and matters connected therewith and recommend action
necessary for the encouragement of
private investments including simplification of
procedures affecting investment and legislative measures;
(k) To
assist holder of Certificate of Approval in securing all licenses,
authorizations, approvals and permits required
to enable any approval granted by the Centre to have full effect;
(l) To maintain
liaison between private investors and Ministries, Government departments,
agencies, institutional leader and other authorities concerned with
investment;
(m) To
monitor the performance of enterprises approved by it and to enforce
compliance with the terms of approvals
and the provisions of this Act and regulations made thereunder;
(n) To
exercise all functions and powers and perform all duties which,
under or by virtue of any other written law, are or may be vested
or delegated to it;
(o) To
do all such things as are necessary or incidental
or conductive to the functions specified in this Act.
Appointment
of the Director General Act No.10 of 1992
6.-(1) There
shall be a Director General of the Centre who shall be appointed
by the President, and shall be charged with
the responsibility for the day to day administration and organisation
of the functions of the Centre and the implementation
of its
decisions.
(2) In
appointing the Director, regard shall be had of the need to
appoint a person with adequate knowledge and
experience in business affairs, or in the management
of the government or public affairs or who has
proven ability in dealing with national
and international affairs.
(3) The
Director shall be the Chief Executive Officers
of the Centre and shall be responsible for its day to day activities.
Establishment
of the Investment Committee
6A.-(1) There
is hereby established a Committee of the Centre to be known
as the Investment Promotion Committee, in
this Act referred to as "the Committee"
(2) The Committee
shall be composed of the following members:-
(a) the
Chairman who shall be appointed by the Minister
from amongst the member of the Committee;
(b) the
Principal Secretary to the Ministry
responsible of Planning and Economic Affairs;
(c) the
Principal Secretary to the Ministry responsible
for Finance;
(d) the
Principal Secretary to the Ministry responsible
for Water, Energy and Minerals;
(e) the Principal
Secretary to the Ministry responsible for Trade and Industries;
(f) the
Principal Secretary to the Ministry responsible
for Lands, Housing and Urban Development;
(g) the Director
General of the Investment Promotion Centre;
(h) the Governor
of the Bank of Tanzania; and
(i) one person
appointed by the Minister from the private sector.
(3) The
Minister may by notice published in the Gazette vary the composition
of the Committee.
(4) Subject
to the provisions of this Act, the Committee shall regulate
its own procedures.
6B.-(1) There
is hereby established a Council to be known as the National
Investment Promotion Advisory Council
which shall consist of twenty-two members of the business
community, persons who have knowledge and experience
in administration and public affairs, operators in industry
and commerce as well as Members of Parliament in this Act referred
to as "Advisory Council"
(2) The
Chairman of the Advisory Council shall be appointed
by the President.
(3) The
Advisory Council shall be a forum for
advising the Minister on matters of investment promotion in
the country.
(4) The
Advisory Council shall meet once every year and at such other
time as the Minister may determine.
7. Subject
to any written law and to any directions given by the President
in that behalf, there shall be appointed to the Centre such
staff, advisors or other persons of
such appropriate professional competence or experience
in business affairs or in the management of government or public
affair as may be necessary for the efficient discharge of the functions
of the Centre.
8. The
Centre may levy such fees and for its services as may be approved
by the Minister from time to time.
PART III
APPLICATION
FOR APPROVAL OF ENTERPRISES AND AREAS OF INVESTMENT
9. After
the effective date any local or foreign investor
may invest in a new enterprise to which this Act applies only where:-
(a) the investment is with respect to an enterprise
other than one in an area reserved to an exclusively
for the public sector as specified in the Schedule;
(b) he has
received a Certificate of Approval with respect to the enterprise;
(c) he has
fulfilled all other conditions provided for under this Act.
10. An application
for a Certificate of Approval shall be made to the Centre
by a national only where he wishes to invest in
an approved enterprise:
(a) in
any new enterprise other than one in an
area reserved exclusively for the public sector;
(b) in
the rehabilitation and expansion
of an existing enterprise.
11. An application
for Certificate of Approval shall be made by a foreign national
to the Centre in respect of an investment:
(a) in
any enterprise other than one in
an area reserved exclusively to the public sector;
(b) in
any of the enterprises specified in paragraph 2 of Part C of the
Schedule where the investment is not less than
amount therein specified.
12.-(1) Applications
shall be made in accordance with
such procedures and form as may be prescribed by the Centre
and shall be accompanied by a statement on the likely
contribution of the enterprise to the objectives
set out in subsection (1) of Sections
13 and such other information as may be required by the Centre.
(2) Every application
shall be accompanied by such fee as may be prescribed from
time to time.
(3) The
Centre shall submit within ten days of receipt
of an application a copy thereof to the Ministry, Government Department
or Agency with sectoral responsibility for enterprises
of such nature.
(4) Any Ministry,
Government Department or Agency to which a copy of the application
is submitted shall, within days of receipt thereof,
submit to the Centre any comments on the
application which shall be considered by the Centre
in determination of the
application but
if at the expiry of such fourteen
days no comments are received by the Centre it shall proceed
to deal with the application, and its decision shall be final and
binding.
(5) The
Centre shall consider an application made to it within
sixty days after the receipt of the application and may, subject
to the provisions of this Act, in its discretion, grant or refuse
the application.
13.-(1) In
considering application made under sections 10,11 and 12,
the Centre shall satisfy itself of the likely contribution by the
enterprise to the economic development
and benefit of Tanzania, in particular, with respect
to the following objectives
:-
(a) the maximisation
of foreign exchange earnings and savings;
(b) the
enhancement of import substitution activities
which achieve identifiable substantial foreign exchange savings;
(c) the expansion
of food production;
(d) the achievement
of a high degree of technology transfer;
(e) the
creation of employment opportunities and the development of human
resources;
(f) the
efficient utilisation, expansion and diversification of the
productive capacity of existing enterprises;
(g) the
provision of services or the production of goods which
improve linkages between the various sectors of the economy.
(2) In addition
to the objectives specified in subsection (1) the Centre shall have
regard to :-
(a) the
capital, technical skills and raw materials available to the applicant;
(b) the
local materials' supplies and services to be used by the applicant;
(c) interests
and conditions of service of the labour employed or to be employed
by the applicant;
(d) the
general promotion and development of enterprises within Tanzania
and the need to generate constructive competition among enterprises;
(e) the
potential demand, both within the United Republic
and elsewhere, for the product or services of the enterprises;
(f) the
siting or proposed siting of the enterprise in relation to
the availability of power, fuel, labour,
transport, raw materials, land and water;
(g) the promotion
of balanced and equitable growth throughout the country;
(h) the
interest of potential consumers from investment in the
enterprise being undertaken.
14. In
the event that an application is approved by the Centre, the
Centre shall grant a Certificate of Approval specifying:-
(a) the
name, nationality and other particular of the investor
and in the case of a company, the nationality
and number of shareholders;
(b) the name,
description and location of the enterprises;
(c) the
approved enterprise and, where appropriate, the size and approved
capacity of the enterprise;
(d) the
amount and source of capital including the
relevant foreign currency;
(e) in
the case of a foreign national, the form of assets other than
foreign currency to be invested and the value of such assets as
approved by the Centre;
(f) the
proportion of the foreign capital invested or
to be invested to the total assets of the enterprise whether
the investment consists of the acquisition of
shares or stock in body corporate the number and
description thereof;
(g) particulars
of any technology agreement, its duration and
payments to be made thereunder;
(h) any
loan with respect to the enterprise and the currency in which
repayments are to be made;
(i) the
period within which the investment is to be made and the date of
issue and expiry of the certificate;
(j) such
other matters as may be necessary or desirable having
regard to the provisions of the Act.
15.-(1) A
Certificate of Approval shall not
be transferred without the approval of the Centre.
(2) Every
application for approval of a proposed transfer of a
Certificate of Approval shall be made to
the Centre in the prescribed form and the
Centre may, in its discretion grant or refuse the application
and may, if the approval is given, attach
terms and conditions
to the Certificate to be transferred or, where
terms and condition are already attached, may
vary the existing terms and conditions.
16. The Centre,
may amend a Certificate of Approval granted under
section 14:-
(a) In any
case in which it is satisfied that some other national or
foreign national has succeeded to
the interest in the enterprise of the holder
of the Certificate, by substituting for the name of the holder the
name of the successor;
(b) In
any case where the name of the enterprise is altered
by substituting the name as so altered;
(c) with
the written consent of the holder, by
varying the relevant foreign currency;
(d) by
extending the period during which the investment or
the investment of foreign capital is to be made;
(e) by
varying the amount thereof, in any case
in which no foreign capital is to be invested
in the enterprise by the holder, subject
to the approval required under this Act;
(f) in
any case where the investment consists of the acquisition of shares
or stock of a body corporate, and new shares or stock are
acquired otherwise than by the investment of foreign capital, by
varying the number, or amount and the description thereof;
(h) subject
to the foregoing provision and to the written consent of the
holder, in such other manner as may be
necessary or desirable.
Suspension
and Cancellation of Certificate
17.-(1) The
Centre may suspend or cancel a
Certificate of Approval where the holder of the Certificate:
(a) obtained
such Certificate on the basis of
fraud, or deliberate or negligent submission of
false or misleading facts or statements;
(b) assigned
such Certificate without the prior written consent of the
Centre;
(c) fails without
reasonable cause stated in writing to establish the approved
enterprise within the time stipulated
in the Certificate or any extension thereof;
(d) fails
without reasonable cause stated in writing to comply
with the terms of the Certificate, or the provisions
of the Act and any Regulations or request of the
Centre made thereunder within such reasonable
period as may be stipulated by the Centre in a notice to
the holder of the Certificate specifying
the failure to comply.
(2) The
Centre shall, before taking any action under subsection (1),
notify the holder in writing of its intention to cancel the
Certificate and the ground therefore and allow
such holder not less then thirty days
to show cause in writing why
his
Certificate should
not be suspended or cancelled and the Centre may, for such
purpose, hold such inquiry as it thinks fit.
(3) The Centre
shall give due consideration to any representation made by
holder and any action taken to remedy the
ground for suspension or cancellation taking into account the nature
of such ground.
(4) If
a holder notified under subsection (2) fails
to show cause, or fail to do so to the satisfaction
of the Centre, the Centre may suspend or revoke the
Certificate or take such other action as it may think fit including
the suspension of any or all incentives or benefits under the Act.
(5) Where
a Certificate of Approval is suspended the
holder thereof shall cease to be entitled
to rights and benefits conferred under this Act
for the period of the suspension.
(ii) in
the case of cooperative societies registered under the
Cooperative Societies Act, 1991, fifteen percentum; and
(iii) in
the case of a sole proprietor the rate shall
be as specified in the Income Tax Act 1973 subject to
maximum marginal rate of thirty percent;
Provided that
at the expiry of five years after the operative
date tax shall be payable according to the normal rates
22.-(1) As
from the operative dates and within the initial period of five
years, the whole of the withholding tax in respect of an approved
enterprise shall be remitted, thereafter the rate
of withholding tax shall be :-
(a) in respect
of dividends paid from the profits of the approved enterprise, ten
percent in the case of non-residents and five percent in the
case of residents
(b) in
respect of royalties on imported technology,
twenty percent on the gross amount payable;
(c) interest
payable on foreign loans, twenty percent on the gross amount payable.
Provided however
that where the approved enterprise
is the rehabilitation or expansion of an existing enterprise
or where an approved enterprise is rehabilitated,
the enterprise as rehabilitated or
expanded shall be deemed to be the approved
enterprise for
the purpose of this section and tax shall
be calculated and charged on the income in respect
of the total dividends, royalties, or interest paid.
23.-(1) As
from the date of approved by the Centre import duties in respect
of all machinery and equipment necessarily required
for the establishment of an approval enterprise and imported
for use solely and exclusively in such approved enterprise
shall be remitted.
(2) Where
approval is given by the Centre with respect
to an investment in rehabilitation or
expansion of an approved enterprise and
the investment is not less than
the amount prescribed by the Centre from time
to time in the case of
investment by a
national; the rehabilitation or expansion shall be deemed
to be an approved enterprise for the purpose of this
section and be entitled to remission of duty
as provided from subsection (1) commencing from the date of
approval granted with
respect to the
enterprise and continuing thereafter until the
operative date of the enterprise as rehabilitated or expanded.
(3) Where
approval is given by the Centre with respect
to an approved new enterprise remission of import duties
shall extend to spare parts, materials and supplies
necessarily required and imported for the establishment of such
approved enterprise.
Exemption from
Sales Tax Act No.10 of 1992
24.-(1) As
from the date of approval by the Centre, sale tax in respect
of all machinery, equipment necessarily required for the establishment
of an approved enterprise, and imported for
usesolely and exclusively in such approved
enterprise shall be remitted.
(2) Where
approval is given by the Centre with respect
to an investment in rehabilitation or
expansion of an approved enterprise and
the investment is no less than
the amount prescribed by the Centre from time
to time, in the case of
investment by a
national; the rehabilitation or expansion shall be deemed
to be an approved enterprise for the purpose of this
section and shall be entitled to remission of sale tax
provided for in subsection (1) commencing from the date
of approval with
respect to such
enterprise and continuing thereafter until the operative
date of the enterprise as rehabilitated or expanded.
Duty of Commissioners
24A. The
Commissioner of Income Tax and the Commissioner
of Customer in discharging their duties in relation
to income tax, import duties and sales tax on
investors, shall have regard tothe provisions of section
21, 22, 23 and 24 of the National Investment
(Promotion and Protection) Act, 1990.
Certificate
of Approval to be Conclusive evidence
24B. A
certificate of Approval granted by the Centre
shall be conclusive evidence that the remission of
duties and sale tax payable in relation
to goods or articles involved in
the enterprise in questions is in the public interest
in accordance
with section 7
of the Customs Tariff Act, 1976 and section 28 of the Sale
Tax Act, 1976 and the Commissioner shall, on production of the
Certificate or a certified copy of
its, permit the investor to import or purchase
the goods or articles involved free of duties or sales
tax.
Commissioner
of Customs to verity compliance
24C. The
Commissioner of Customs shall have access to the goods or
items imported by an investor, with a view
to certifying compliance with the list of goods
or items in respect of which, remission of duties and sales tax
has been granted and where such
list has not been
complied with the Commissioner shall demand from such
investor necessary tax and duties.
24D. The
remission of customs duty and sales tax shall cease to have
effect the same shall become payable as if remission has not been
made, if any of the goods or items are sold
or otherwise disposed of to any person not entitled to enjoy similar
exemption
without prior approval
of the Minister of Finance.
The provisions
of the written laws set out in the first column of the Schedule
to this Act are hereby amended in the manner set out opposite them
in the Second column.
25. Any
foreign exchange earing enterprise shall be permitted by the Bank
of Tanzania to retain in an external account under the supervision
of the Bank of Tanzania a portion of their foreign
exchange earnings for use in acquiring inputs
required for the
enterprise which would
otherwise not be readily available without the use of such earnings:
Provided that
in the case of net foreign exchange
earnings enterprise the Bank of Tanzania shall
permit a holder of an external account to
utilize up to any percent of such an account to effect overseas
remittances in respect of debtservicing,
profits and settlements
of external obligations.
26.-(1) Where
an investor is granted a Certificate of Approval by the Centre under
the Act, the Minister responsible for land shall grant him
such terms and conditions as may be prescribed a lease of appropriate
land for a term suited to the requirement of his
enterprise:
Provided that
land belonging to a registered village shall not be
leased for comment for activities other than joint
ventures with the village government or
the village's cooperative societies, save that such
land may be sub-leased by the village
itself for small
or medium scale, public or private economic
activities. Any lease under this section shall be for a term
not exceeding ninety nine years.
(2) Not
withstanding the provisions of subsection (1), prior to the
expiry of a lease granted pursuant to subsection (1) of this
section the investor may apply for an extension of his lease
and the Minister responsible for lands may grant
an extension for
such period as he deems
fit.
Provided that
no such extension shall exceed a period of ninety nine years.
Designated
Special Growth Area
27.-(1) The
Minister may on the advice of the Centre designate any
area in the United Republic to be a special growth centre
in accordance with the provision of sub-section
(1), any approved enterprise established in such
area shall be accorded such
special incentives, on
such terms as the Minister may prescribe.
PART V
PROTECTION
OF INVESTMENT, ARBITRATION AND TRANSFER OF
FOREIGN CURRENCY
Acquisition
and compensation
28.-(1) No
approved enterprise, or any property belonging to any person shall
be compulsorily taken possession of and no interest in a right over
such enterprise or property shall be compulsorily acquired except
for public interest and after due process of the
law.
(2) Where
an enterprise is compulsorily acquired, full and fair compensation
as provided under Article 24 of the Constitution
shall be payable.
(3) Any
compensation payable under the provision of this section shall be
made promptly and shall be transferable.
Arbitration.
29.-(1) Where
any dispute arises between a foreign investor and the government
in respect of any approved enterprise, all effort shall be
made through mutual discussions to reach an amicable
settlement.
(2) Any
dispute between the foreign investor and the Government in
respect of an approved enterprise which
is not amicably settled through mutual discussion may
be submitted to arbitration:
(a) in accordance
with the rules and procedure for arbitration of the International
Centre of the Settlement of
Investment Disputes; or
(b) within
the frame work of any bilateral or
multilateral agreement on investment protection to which
the Government andthe country of which the investor is a national
are parties; or,
(c) in
accordance with any other international machinery for the settlement
of investment disputes agreed by the parties.
(3) An approval
of any enterprise may specify the particular mode of arbitration
to be resorted to in the case of disputes relating to that
enterprise and such specification shall constitute the
consent of the Government or any agency
thereof and of the
investor to submit to
that forum.
30. Notwithstanding
the provision of any other law for the time being in
force, the holder of a certificate of approval
shall be entitled in respect of the approved
enterprise to which such certificate relate to
transfer out of the United Republic
of Tanzania in
the approved foreign currency and at the prevailing
official rate of exchange and after payment of taxes:-
(a) dividends
or net profits from investment of foreign assets in the approved
enterprise;
(b) the approved
proportion of the net proceeds of sale of all or any part
of the approved enterprise, either in liquidation or as a going
concern;
(c) the
principal and interest of any loan specified
in the certificate.
(d) payments
in respect of loan servicing where foreign loans has been obtained
by the approved enterprise.
31. For
the purpose of this part, "foreign assets"
includes foreign currency, credit rights, benefits
or property, any property obtained by the
expenditure of foreign currency, the provision of foreign
credit for the use of exploitation of foreign
right, benefits
or property, and any profits from an investment in an
approved enterprise by the holder of a certificate issued
in relation to that enterprise.
32. The
holder of a registered certificate or licence shall have the same
right under this part as the holder of a certificate of Approval.
PART VI
TRANSITIONAL
AND MISCELLANEOUS PROVISIONS
33.-(1) Where
immediately prior to the commencement of this Act a foreign national
holds :-
(a) a
valid registered certificate or a valid industrial licence granted
to him under the National Industries (Licensing
and Registration) Act 1967; or
(b) a
valid business licence issued under the Business Licensing Act 1972;
or
(c) a
valid certificate issued under
Foreign Investment (Protection) Act 1963; or
(d) any other
valid certificate or licence issued under other Act with respect
to the establishment of an enterprise as may
be recognised by the Centre;
notice thereof
shall be given to the Centre in the prescribed
form accompanied by a certified copy of
such certificate or licence within six months of the
date of commencement of this Act and such notice shall constitute
registration for the purpose of
this Act.
(2) After the
date of commencement of this Act a foreign national may continue
to operate an existing enterprise only where he is registered
pursuant to subsection (1)
(3) The rights
and benefits conferred by a registered certificateor licence
shall continue in force subject however to the rightof the
Centre to issue such directions or make such regulation not
inconsistent with the rights and benefits conferred
by such certificate or licence, with respect to
the exercise of any rights or obligations thereunder.
Investment
in existing enterprises by foreign nationals
34.-(1) A
foreign national who holds a registered certificate or licence
may from time to time
make an investment in rehabilitation
or expansion of an existing enterprise, provided
that:
(a) notice
of the investment shall be given to the Centre; and
(b) an application
shall be made for amendment of the registered certificate or licence
where necessary.
(2) The
Centre shall satisfy itself that the investment of which notice
has been given under subsection(1) of section 34 has been
made or will be made by the holder of the registered certificate
or licence and shall amend the registered certificate or licence
as may be necessary.
(3) Where
a foreign national holding a registered certificate or licence
wishes to make an investment in
rehabilitation or expansion of an existing enterprise, application
shall be made to the Centre for a Certificate of Approval
pursuant to section II and the investment shall be undertaken;
only where approval has been given and a Certificate of Approval
has been granted by the Centre.
35. Where
at the date of commencement of this Act,
a foreign national holds a valid certificate or licence with
respect to an existing enterprise which has been reserved
for nationals by virtue of this
Act, the foreign national may
undertake rehabilitation of the enterprise
where the amount of the investment is
not less than the amount specified in the Schedule hereto.
36.-(1) A
foreign national who is a holder of a Certificate of
Approval may make an investment in rehabilitation or expansion of
an approved enterprise where the amount of the investment, in the
case of an investment in any area reserved for
national is not
less than the amount
specified in Part C of the Schedule or as prescribed by
the Centre thereunder, in the case of a foreign
national; provided however that notice and particulars
of the investment shall be given to the Centre and an
application shall
be made for amendment
of the Certificate of Approval.
(2) The
Centre shall satisfy itself that the investment of which notice
is given under subsection (1) has been made
or will be made by the holder of the Certificate of Approval and
shall amend the Certificate of Approval as may be necessary.
(3) Where
the holder of a Certificate of Approval wishes to make an investment
in rehabilitation or expansion of an
approved enterprise, he shall make an application
to the Centre for approval of the investment
and amendment of the Certificate of
Approval and
the investment shall be undertaken only
where approval has been appropriately amended by the Centre.
37.-(1) Any
person who:
(a) deliberately
submits false or misleading, facts or statements to obtain a Certificate
of Approval or benefit under this Act;
(b) applies
any benefits conferred by or under this Act for
a purpose other than those for
which the benefit has been conferred.
(c) tails to
comply with any request made pursuant to this Act or to permit the
inspection required by section 40. shall be guilty of an offence.
(2) A person
guilty of an offence under this section or any other section the
Act shall be liable on conviction to a fine :
(a) in
the case of foreign national, to a fine
not exceeding fifty thousand United States of America
dollars or equivalent convertible foreign currency;
(b) in
the case of a national, to a fine not
exceeding one million Tanzania shillings, or to
a term of imprisonment not exceeding twelve months.
Accounts and
records of enterprises
38.-(1) The
holder of a Certificate of Approval shall maintain separate
accounts and records in respect
of the approved enterprise or new enterprise
as rehabilitated or expanded and deemed to be the approved
enterprise.
(2) The
holder of a registered certificate or licence shall keep such accounts
and records as the Centre may require.
Information
and inspection
39.-(1) The
Centre may require any person to supply information relevant
for the purpose of implementation of the provisions
of the Act and regulations made thereunder
or with respect to any Certificate of Approval, or registered certificate
or licence and it shall be the duty of any such
person to comply with the
request.
(2) An
authorised representative of the Centre or any officer of Government
may, on giving reasonable notice, to:
(a) the holder
of a Certificate of Approval; or
(b) the holder
of a registered certificate or licence; or
(c) any employee,
agent or representative of the holders referred to in paragraph
(a) or (b) carry out inspection of an approved enterprise
and accounts, records and information relating to the approved
enterprise or required for the purpose of this Act.
Guidelines
40. The
Centre may issue guidelines or directions from time
to time for carrying out the provisions of this Act
or regulations made thereunder including
procedure for submission of
applications and the relevant
approval necessary for the
establishment of an approved
enterprise.
Amendment to
existing enactments
41. The following
enactments:
Acts, 1967
No. 10
(a) the
National Industries(Licensing and Registration)
Acts,
1967
Acts, 1972
No.25
(b) The Business
Licensing Act, 1972;
Acts, 1973
No. 33
(c) The Income
Tax Act, 1973
(d) the Sales
Tax Act, 1976;
(e) the Customs
Tariff Act, 1976;
(f) the Companies
(Regulations of Dividends) Acts, 1972;
(g) Exchange
Control Ordinance.
and other
enactment relating to the functions of the Centre as
provided under this Act shall have effect with such modifications
as may be necessary to give full effect to this Act.
42.-(1) The
Foreign Investments (Protection) Act, 1963 is hereby
repeated.
(2) Notwithstanding
the repeal of the Foreign Investment Act, 1963
any agreement executed thereunder and in force immediately
before the commencement of this Act shall continue in force as if
made under this Act and application pending under the
Act shall
be deemed to have been
made to Centre.
Provided that
agreements continued in force by this subsection shall
unless modified by any new agreement entered into with the
Centre, confer only the benefits previously enjoyed
under the said agreements before the commencement of this
Act.
43. Except
as herein in this Act expressly provided, this
Act shall be supplementary to but not in derogation of any
other law applicable to an investor or his enterprise and the compliance
by an investor with the provisions of this Act
shall not stop him from
his obligations to comply with the provisions of any
other law except to the extent repealed by this Act.
44. The Minister
may make regulations for the better carrying out of the provision
and purposes of this Act and without prejudice to the generality
of the foregoing may make regulations:
(a) to
prescribe to be furnished for applications, progress and other
reports and any other matter whether or not specified
or prescribed under this Act;
(b) to prescribe
procedures for the functioning of the Centre;
(c) generally
for the purpose of giving effect to the provision of this
Act.
Official Secrecy
45. Any
person who in the course of his official duties in the
administration of this Act has possession of or control over
any document or information obtained
under this Act and who communicates such
document or information or any part thereof to
any other person
to whom he is not authorised to communicate by an enactment
or by the Centre shall be guilty of an offence and on conviction
shall be liable to a fine not exceeding
twenty thousand shillings or to imprisonment for
a term not exceeding
two years or to both
such fine and imprisonment.
SCHEDULE
A. PRIORITY
AREAS FOR INVESTMENT
1. AGRICULTURE
AND LIVESTOCK DEVELOPMENT:
(a) Food crops
and cash crops:
Tea
Sisal and sisal products
Coconuts
Wheat
Cashewnuts
Palm oil
Sugar
Castor Oil
Barley
Fruit, Vegetable and
Flowers for export.
(b) Livestock
Development :
Heifer breeding/Dairy
farming
Piggery
Sheep/goats keeping
Beef ranching
Poultry
2. NATURAL
RESOURCES :
Forestry
Fishing and fish farming
Game cropping for commercial
purposes
Wildlife ranching.
3. TOURISM
:
(a) Operation
of tourist hotels, other accommodations,
(b) Tourist transportation
(including road transport, air charter
and oceangoing vessels),
(c) Provision of
services related to tourism such as tourist
safaris (including licensed hunting, restaurants and photographic
services).
4. MANUFACTURING
INDUSTRIES :
Animal feed
processing
Beverages
Textiles
Leather goods
Steel and metal engineering
Cement and ceramics
Electrical engineering
Electronic engineering
Printing and publishing
Pharmaceutical
Fish processing and canning
Fish nets Packing
General processing
Bottles and glass ware
Paints
Automotive engineering
5. PETROLEUM
AND MINING :
The exploration
and production of :
- Oil and gas
- Gold
- Diamonds
- Gemstones
- and all other
minerals, metallic and non-metallic
6. CONSTRUCTION
:
Hotels and
other tourist accommodation
Residential houses
Commercial buildings
Warehouses, industrial
sheds
Estates and factory buildings.
7. TRANSPORT
:
Roads haulage
Coastal shipping
Air charters and airlines.
8. TRANSIT
TRADE :
Activities
relating to the transit of goods to neighbouring
countries, and to the re-export of goods which have
value added in Tanzania.
9. COMPUTERS
AND HIGH TECHNOLOGY :
Activities
relating to the manufacture, assembly,
marketing, servicing, utilization and human
resources development of computers and other high technologies.
B. RESERVED
AREAS
The following
areas of strategic importance are
reserved exclusively for investment by the public
sector, except where special licences may be granted. The
IPC will, from time to time, advice the government on such areas:
- The
manufacture, marketing and distribution of armaments
and explosives of all types.
- The
provision of public water for domestic and
industrial purpose.
- The building
and operation of all railways.
C. ACTIVITIES
RESERVED FOR LOCAL INVESTOR
Exclusively
Reserved Areas
Retail or wholesale
trade
Product brokerage
Business representation
for foreign companies
Operation of public relations
business
Operation of taxis
Barber shops, hairdressing
and beauty saloons
Butcheries
Ice-cream making and
parlours.
Areas which
foreign investors with less than two hundred
and fifty thousand United State Dollars (US$ 250,000)
or some other amount which may be stipulated by IPC
from time to time will be excluded:
Travel Agencies
Car hire
service
Bakeries, confectioneries
& food processing for the local market
Tailoring of garments
for the domestic market
Manufacture of leather
goods for the domestic market
Building's repair and
decorations units
Manufacture of house
and office furniture for the domestic market
The provisions
of the written laws set out in the first column of the Schedule
to this Act are hereby amended in the manner set out opposite them
in the Second column.
SCHEDULE
First Column
Second Column
Income Tax
Act, 1973 is amended as follows:
(a) in
section 33 by adding the following new paragraph
: "7. Notwithstanding anything to the contrary in
this Act, in the circumstance referred to in subsection
(1) and (2) of section 21 of the Investment (Promotion and
Protection) Act, 1990, tax upon
income, at the
rates specified in paragraphs (a, (b) and (c) in the case
of approved new investment, and at the rates specified under
subsection (2)(b) in case of approved enterprise."
(b) in
section 61 by adding immediately after subsection (2) the following
new paragraph :-
"(3) The
holder of a Certificate of approval
granted under section 14 of the National Investment
(Promotion and Protection) Act, 1990 shall maintain separate accounts
and records in respect of the approved enterprise or new enterprise
as rehabilitated or
expanded and deemed to
be approved enterprises".
(c) in section
130 by adding immediately after subsection (1) the following paragraph
:
Acts, 1990
No.10
"(1A) Where,
by virtue of the operation of section 21
of the National Investment (Promotion and Protection) Act,
1990 any tax is remitted, the Commissioner shall refrain
from recovering the tax in question".
Acts, 1976
No.12
The Customs
Tariff Act, 1976 is amended in Part B of the Third Schedule
by adding the following new paragraph
Acts, 1990
No.10
"26. Machinery
and equipment or machinery, equipment,
spare parts, materials and supplies as the case
may be, necessarily required for an approved enterprise under
the National Investment (Promotion and Protection ) Act, 1990 and
imported for use solely
and exclusively in such
approved enterprise".
Acts, 1972
No.22
The Companies
(Regulation of Dividends and Surpluses
and Miscellaneous Provisions) Acts, 1972 is amended
by adding the following new section immediately after section
7:
Addition of
new section 7A
"(7A.-(1) Notwithstanding
any provision to the contrary in this Act, where a Certificate
of Approval granted under section 14 of the National Investment
(Promotion and Protection) Act, 1990 is in force in
respect of a company and an enterprise,
this Act
shall not apply
and no power under this Act shall be exercised, in relation
to the Company carrying on the enterprise".
(2) Where
a certificate of Approval so granted is in force
in respect of a Company and an enterprise, an
order made under section 9 and 10 of this
Act, shall cease to have effect in relation to
the Company in carrying on the enterprise".
Acts, 1967
No.10
The National
Industries (Licensing and Registration) Acts, 1967, is amended
by inserting immediately after section
10A the following new section:
Addition of
new section 11
"11.-(1) Notwithstanding
any provision to the contrary in this Act, where a Certificate
of Approval is granted under section 14 the National Investment
(Promotion and Protection) Act, 1990 is in force in
respect of a person and an enterprise, that person may
carry on the enterprise
without being the holder of an industrial licence relating to the
enterprise.
(2) Where
a Certificate of Approval is granted in respect of an enterprise
any industrial licence then in force in respect of the enterprise
shall cease to be in force to the extent
that it relates to the enterprise".
|
