Eritrea Corporate Income Tax

Corporate income tax and withholding

Companies operating in Eritrea are taxed on business profits under the Income Tax Proclamation No. 24/2011. The headline rate is reported inconsistently across country guides (30% vs 33%), so the figure should be confirmed against the Proclamation. The mining/petroleum sector is taxed under separate legislation at higher rates.

• Standard corporate income tax rate — 30% percent (approx — confirm; some sources cite 33%) (Income Tax Proclamation No. 24/2011)
• Alternative headline rate cited by some guides — 33% percent (approx — confirm which rate is current) (Income Tax Proclamation No. 24/2011)
• Mining / petroleum sector corporate rate — Higher rate (commonly cited around 38%) under sector-specific mining law percent (approx — confirm rate and statute) (Mining Proclamation / Mining Income Tax Proclamation)
• Tax base — Net business profit (taxable income after allowable deductions) (Income Tax Proclamation No. 24/2011)
• Withholding tax on dividends (to non-residents) — 5% percent (approx — confirm) (Income Tax Proclamation No. 24/2011)
• Withholding tax on interest (to non-residents) — 10% percent (approx — confirm) (Income Tax Proclamation No. 24/2011)
• Withholding tax on royalties (to non-residents) — 10% percent (approx — confirm) (Income Tax Proclamation No. 24/2011)
• Corporate return filing / payment — Annual return filed after the close of the tax year, with tax payable on assessment (approx — confirm exact deadline) (Income Tax Proclamation No. 24/2011)
• Capital gains — Gains generally taxed as business income; no separate general CGT regime widely documented (approx — confirm) (Income Tax Proclamation No. 24/2011)