Eritrea Personal Income Tax

Personal income tax bands (employment income)

Personal income tax is progressive and applied at source on employment income. The monthly bands below are widely reported by country tax guides; the precise schedule should be confirmed against the Income Tax Proclamation No. 24/2011.

• Tax-free threshold (monthly employment income) — Up to ERN 800 per month is exempt ERN/month (approx — confirm) (Income Tax Proclamation No. 24/2011)
• Band: ERN 801–1,000 per month — 5 percent (Income Tax Proclamation No. 24/2011)
• Band: ERN 1,001–1,500 per month — 10 percent (Income Tax Proclamation No. 24/2011)
• Band: ERN 1,501–2,000 per month — 15 percent (Income Tax Proclamation No. 24/2011)
• Band: ERN 2,001–3,000 per month — 20 percent (Income Tax Proclamation No. 24/2011)
• Band: above ERN 3,000 per month — 30 percent (Income Tax Proclamation No. 24/2011)
• Overall progressive rate range — 2% to 30% percent (approx — lowest band reported as 2% by some sources) (Income Tax Proclamation No. 24/2011)
• Collection method for employment income — Tax withheld at source by the employer (PAYE-equivalent) (Income Tax Proclamation No. 24/2011)
• Residence test — Generally based on physical presence / domicile in Eritrea during the tax year (approx — confirm day-count test) (Income Tax Proclamation No. 24/2011)
• Non-resident employment income — Taxed on Eritrean-source income; final withholding may apply (approx — confirm) (Income Tax Proclamation No. 24/2011)
• Diaspora income tax — 2 percent (rehabilitation and recovery tax on worldwide income of Eritrean nationals abroad) (Proclamation on the 2% Rehabilitation and Recovery Tax (diaspora tax))
• Filing / payment of withheld tax — Employer remits monthly; annual reconciliation after year-end (approx — confirm exact dates) (Income Tax Proclamation No. 24/2011)