‘Chinese firms positively impact key sectors in Tanzania’

DAR ES SALAAM: CHINA has said Chinese enterprises are crucial to Beijing-Dodoma cooperation, significantly impacting key sectors such as agriculture, manufacturing, mining and telecommunications

Chinese Ambassador to Tanzania Chen Mingjian said these enterprises have made significant contributions to promoting the country’s economic development and are among the largest taxpayers among foreign-funded enterprises.

“Tanzania requires these enterprises to strictly abide by local laws and regulations, pay taxes according to the law and actively cooperate with the TRA (Tanzania Revenue Authority),” Ms Chen said during the 2024 Tanzania-Chinese enterprises tax exchange conference.

She also outlined some challenges faced by Chinese enterprises, including those related to import tax and income tax.

“We have established a communication platform for TRA and Chinese enterprises to facilitate dialogue between the two sides,” she said.

She expressed optimism that ongoing dialogue and training would lead to a better understanding of the laws, regulations and policies for smooth operations.

TRA Commissioner General, Yusuph Mwenda, reaffirmed the agency’s commitment to fostering a business-friendly environment while ensuring tax compliance.

“Our mission is to simplify business operations to enable companies to grow and contribute more in taxes, benefiting both the businesses and the country,” he stated.

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He addressed the specific concerns of Chinese businesses, urging them to “obtain the necessary permits to operate legally in the country” and adhere to procedures for tax-exempted projects to avoid complications.

“Businesses must register if they are operating without the proper permits, or they will face legal consequences,” he said.

Earlier, Chairman of the Chinese Investment Association for Chinese Enterprises operating in Tanzania, Mr Jensen Huwang, revealed that the tax burden was considerable, impacting their enterprises

Additionally, the discussed chairman faced the challenges faced by contractors, particularly regarding the VAT exemption for certain projects.

“Contractors are severely affected by the VAT issue, which takes a large portion of their profits,” he noted.

He called for improved communication between TRA and Chinese enterprises to address these issues effectively.