What monthly employment income tax rates apply in Eritrea's tax system?

The documented monthly schedule taxes taxable employment income in Nakfa at 2% up to Nakfa 200, 10% from Nakfa 201 to 1,200, 20% from Nakfa 1,201 to 2,500, 25% from Nakfa 2,501 to 3,500 and 30% above Nakfa 3,500. Employers generally withhold employment tax each month.

Which business profit taxes and filing duties apply under Eritrea's tax system?

Incorporated businesses follow a documented profit-tax schedule of 25%, 28%, 30% or 35%, while unincorporated businesses follow rates from 2% to 38%; reinvested profit is listed at 20%. Businesses generally submit an annual return or self-assessment and typically pay within four months after the financial year ends, although current forms and procedures should be confirmed with the tax administration.

How does Sales Tax differ from value-added tax in Eritrea's tax system?

Eritrea has no directly equivalent general value-added tax. Sales Tax is a single-stage charge collected at factory sale, wholesale sale or import clearance, with historically documented goods rates of 3%, 5% and 12% and service rates of 5% or 10%; current schedules should be checked because the public legislation is not fully consolidated.

How is the 2% Diaspora Tax handled under Eritrea's tax system?

The 2% Diaspora Tax applies to Eritreans earning defined income abroad, including net employment income, rent from movable or immovable property and professional or vocational services. Collection is described as monthly or annual through Eritrean embassies, consulates and other diplomatic representatives, while current enforcement practice and the publicly documented procedure remain contested and unclear.

What records and procedures does Eritrea's tax system require from taxpayers?

Taxpayers may have to register, file returns, pay assessed amounts, keep records and receipts, and cooperate with assessment or audit. The legal framework provides for assessment, penalties, refunds and appeals, but current forms, electronic filing, deadlines and the competent appeal body are not reliably documented in the available public sources.

Taxes in Eritrea

Eritrea's tax system combines taxes on employment, business profits, sales, imports, specific goods, property income and selected agricultural activities. Employment income is usually taxed monthly through employer withholding, with monthly taxable income rates ranging from 2% to 30% in Nakfa. Eritrea has no directly equivalent general value-added tax; its Sales Tax is a single-stage levy on specified goods and services. A separate 2% Diaspora Tax applies to Eritreans earning defined types of income abroad.

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The national tax framework is based mainly on the Income Tax Proclamation No. 62/1994 and its Amendment Proclamation No. 116/2001, together with legislation on receipts, sales and excise tax, rural agricultural income and cattle tax, stamp duty and diaspora taxation. The available public material does not provide a verified, consolidated current tax code or a fully clear current online structure for the responsible authorities. The Ministry of Finance and Development and the national tax administration are the main bodies identified for domestic taxation. No separate municipal tax variation is evidenced for the country-level scope of Eritrea.

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