ARRANGEMENT OF SECTIONS
1. Short title.
THE CENTRE AND ITS FUNCTIONS
4. Establishment of the Centre.
5. Objectives of Centre.
6. Functions of Centre.
7. The Board.
8. Proceedings of the Board.
9. Committees of the Board.
10. The Executive Director.
12. Limitation of liability of members and staff.
13. Funds of the Centre.
14. Accounts, auditing and reports.
PROVISIONS RELATING TO INVESTMENT
15. Investment opportunities.
16. Relationship with Ministries and other public authorities.
17. Application for certificates and registration.
18. Establishment of enterprises.
20. Benefits for strategic or major investments.
21. Investment guarantees, transfer of capital, profits and dividends.
22. Guarantee against expropriation.
23. Settlement of disputes.
24. Immigration quota.
25. Obtaining credit from domestic sources by foreign investors.
26. Technology transfer agreements.
27. Offences and penalties.
28. Service of documents.
30. [Repeal of Act No. 10 of 1990.]
31. [Transitional provisions.]
THE TANZANIA INVESTMENT ACT
An Act to make provision for investment in Tanzania, to provide for more favourable conditions for investors, and for related matters.
[10th September, 1997]
[G.N. No. 692 of 1997]
Act No. 26 of 1997
PRELIMINARY PROVISIONS (ss 1-3)
This Act may be cited as the Tanzania Investment Act.
(1) Subject to this section, this Act shall apply to any business enterprise which meets the requirements specified in subsection (2) other than–
(a) a business enterprise which is authorised to conduct reconnaissance, prospecting or mining operations under the Mining Act *, or is seeking authorisation to conduct any such operations;
(b) a business enterprise which is authorised to conduct exploration or production operations or to construct or operate a pipeline under the Petroleum (Exploration and Production) Act *, or is seeking authorisation to conduct any such operation;
(c) a business enterprise which is engaged in the manufacture, marketing or distribution of hazardous chemicals, armaments or any type of explosives.
(2) The businesses specified for the purpose of this section which may enjoy the benefits and protection provided under this Act, are those which–
(a) if wholly owned by a foreign investor or if a joint venture, the minimum investment capital is not less than Tanzanian shillings equivalent to three hundred thousand US dollars (US$300,000);
(b) if locally owned, the minimum investment capital is less than Tanzanian shillings equivalent to one hundred thousand US dollars (US$100,000).
(3) Notwithstanding the provisions of subsection (1)(a) and (b), the provisions of section 21 which relate to guarantees of transfer of capital, profits and dividends and section 22 which relates to the guarantees against expropriation, shall apply to any business enterprise which holds a mineral right granted under the Mining Act * or a licence granted under the Petroleum (Exploration and Production) Act * as though the holder has for the purpose of those provisions been granted a certificate of incentives and protection.
(4) Nothing in section 22 relating to expropriation shall be read or construed as limiting or qualifying the right of the Minister or the Commissioner acting under in accordance with the Petroleum (Exploration and Production) Act * or the Mining Act * to terminate a licence granted under those laws.
(5) Notwithstanding subsection (1), the Centre shall assist all investors, whether or not this Act applies to them to obtain necessary permits, authorisations, approvals, registrations, consents, licences and any other matter required by law for a person to set up and operate an investment.
In this Act, unless the context requires otherwise–
"benefits" includes facilities and incentives provided by or pursuant to this Act.
"Board" means the board of Directors of the Centre appointed under section 7;
"business enterprise" includes facilities and incentives provided by or pursuant to this Act;
"capital" means all cash contribution, plant, machinery, equipment, buildings, spare parts, and other business assets other than goodwill which are not consumed in the regular operations of the business and have a life of more than twelve months;
"Centre" means the Tanzania Investment Centre established by section 4;
"certificate" means the certificate of incentives issued under section 17(1);
"facilities" include licences, approvals and permits necessary for the establishment of a business enterprise which an investor may be obliged to obtain for the purposes of this Act;
"foreign capital" means convertible currency, plant, machinery, equipment, spare parts, raw materials and other business assets other than goodwill that enters Tanzania with no initial disbursement of foreign exchange and are intended for the production of goods and services related to an enterprise to which this Act applies;
"foreign investor" in the case of a natural person means a person who is not a citizen of Tanzania, and in the case of a company, a company incorporated under the laws of any country other than Tanzania in which more than fifty percent of the shares are held by a person who is not a citizen of Tanzania, and in the case of partnerships, means a partnership in which the partnership controlling interest is owned by a person who is not a citizen of Tanzania;
"incentives" means tax reliefs and concessional tax rates which may be accessed by an investor under the Income Tax Act *, the Customs Tariff Act *, the Tanzania Revenue Authority Act *, the Value Added Act *, and any other law for the time being in force, and includes additional benefits that may be accessed by an investor under sections 19 and 20;
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