Attachment J.2 Work Permit & Residence permit Tips.pdf

9/2017

Attachment . J.5

WORK PERMIT & RESIDENCE PERMIT TIPS

FOR IMPLEMENTING PARTNERS

USAID/TANZANIA

I. General

1. This Tip Sheet provides a broad outline of the current landscape for work permits and residence permits for expatriate personnel of USAID-funded Implementing Partners (IPs) in Tanzania. IPs are responsible for determining how to obtain, and obtaining, these documents for their personnel. IPs are strongly urged to work closely with the outside advisor of their choice in this regard. Neither this Tip Sheet nor the USAID Mission can provide definitive advice.

2. Government of Tanzania (GOT) practices and procedures for providing these permits, and visas, are evolving and becoming more rigorously applied. Practice can vary from formal requirements, and requirements may be applied inconsistently.

Local outside advisors are the most likely to be aware of current procedures for successfully obtaining these documents.

3. IPs are strongly urged to carefully follow GOT requirements and to avoid discrepancies and errors in their practices and documentation. Copying documentation that was successful two years ago is often not successful today.

II. Setting up Projects

1. An IP is required to be registered with the GOT, as a form of NGO, company, or other organization, before it can request work and residence permits for its employees.

Currently, this process takes several months. Thus, the registration process should commence as soon as an IP receives an award.

2. USAID provides a letter of introduction for the IP to present to the Ministry, and usually also to local GOT entities in regions where the IP is working. Thus, it is important for the IP to keep USAID up-to-date as to the locations of its activities.

III. Permits

1. IP personnel who are not citizens or permanent residents of Tanzania need a work permit (issued by the Ministry of Labor) and a residence permit or Exemption Certificate (issued by Immigration) to work and reside in Tanzania.

2. Historically, IPs obtained work and residence permits through a special process for donor-funded activities. Under this process, the IP requests support for a proposed expatriate employee first from its technical ministry and then from the President’s Office (Public Service Management Department), or directly from the President’s Office in the absence of a technical ministry. This process leads to an Exemption Certificate from Immigration and a work permit from Labor, and is free of charge. USAID intends to not limit its endorsement for Exemption Certificates for expatriate employees to Chiefs of Party and Deputy Chiefs of Party, or to situations where there is a technical ministry.

3. The IP is responsible for obtaining the Ministry’s and President’s Office support for a proposed expatriate. Recently, obtaining this support has been harder, due to concerns about finding and/or training Tanzanians for proposed expatriates’ positions. Third-country nationals and expatriates who have been in Tanzania for a long time have been of particular concern.

4. Recently, some IPs have used a process for expatriates generally. Under this process, an IP first requests a work permit directly from the Ministry of Labor and then a residence permit from Immigration. This process costs $1000-3000, depending upon the category of permits issued by the GOT. USAID understand that, under this process, the GOT, in practice, may not implement the full range of exemptions from VAT and duties implemented through the President’s Office. Currently, under this route all statutory requirements have not always been applied, although there is no assurance that this will continue.

5. Currently, IPs are not required to use one or another of these routes. However, USAID has not determined that the costs under the direct Ministry of Labor route are allowable, and will not treat any consequential taxes and duties resulting from that route (e.g. no duty-free entry for POVs) as allowable costs. IPs should consult with their outside advisors as to the terms and implications of both routes.

IV. Local Solutions

1. Seeking and training Tanzanians. The President’s Office Circular #1 of 2000 (Regarding Human Resources) requires an IP to advertise a vacant position, use open, transparent and competitive procedures, and give Tanzanian candidates an equal opportunity to compete for the position, before the GOT will support an expatriate. The Non-Citizens (Employment Regulation) Act, 2015, stipulates that “all possible efforts have been explored to obtain a local expert” before a work permit is granted to an expatriate. It also requires an applicant for permission to employ a non-citizen to prepare a succession plan – a plan for transfer of the expatriate’s knowledge and expertise to Tanzanians during the period of employment, and establishment of an effective training program to enable Tanzanian employees to undertake the duties of the expatriate.

Other requirements have sometimes been added.

2. USAID Objectives. USAID does not enforce GOT regulations. However, USAID’s Local

Solutions objectives recognize the importance of enhancing the capacity of Tanzanians, including by learning through doing, in addition to delivery of technical inputs. The time needed to develop capacity varies from position to position, and may not always be the same as envisioned by local labor laws and regulations. Recent USAID/Tanzania contracts and awards contain a Sustainability Plan – a plan to ensure the local capacity to continue the activity after the end of the USAID agreement. The Mission takes the Sustainability Plans seriously.