Tax Overview in Eritrea

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

Tax year 2026. The newest income tax text we could open is Legal Notice 119/2012 and the newest sales tax text is Proclamation 117/2001. The Ministry of Justice list dated 2023 shows no later amendment to either. Nothing dated 2023 to 2026 could be opened, so check with the Inland Revenue Department that no later change exists.

Who this applies to

Anyone needing the map first. Detail lives in the linked skills. Currency is the Nakfa (ERN). The Inland Revenue Department under the Minister of Finance administers tax (Proc 62/1994 art 2).

Rates, bands and thresholds

Item	Figure	Conditions	Source
Top personal rate	30%	Over 3,500 a month; see Income tax	Proc 116/2001 art 2, https://tile.loc.gov/storage-services/service/ll/lleritrea/eritrean-proc-116-2001/eritrean-proc-116-2001.pdf
Company rate	30%	See Corporate income tax	Proc 116/2001 art 4, https://tile.loc.gov/storage-services/service/ll/lleritrea/eritrean-proc-116-2001/eritrean-proc-116-2001.pdf
VAT or GST	None	Sales tax at 5%, 10%, 12%; see VAT or GST	Proc 117/2001, https://tile.loc.gov/storage-services/service/ll/lleritrea/eritrean-proc-117-2001/eritrean-proc-117-2001.pdf
Diaspora tax	2% of net income	Citizens abroad	Proc 67/1995, UK translation, https://assets.publishing.service.gov.uk/media/5a7f32ff40f0b6230268e0c6/Eritrea-Appendix-I-II-III-V-Dec-2015.pdf
Stamp duty late penalty	10% of duty	Stamps affixed under 50 Nakfa; paid against receipt at 50 or more where regulations say	Proc 180/2017, https://shabait.com/2017/03/15/proclamation-no-180-2017/
Rural farm and livestock tax	Set by Legal Notice	Effective 1 December 2016; replaced earlier rules	Ministry of Information notice, https://shabait.com/2016/12/02/legal-notice-on-farm-and-livestock-income-tax/

The base

Income is taxed by origin in Eritrea (Proc 62/1994 art 2(8)), by separate schedule: employment, rent, business, commercial farming (art 6).

Deadlines and filing

Employment monthly; business 1, 2 or 4 months after year end; sales tax monthly. See each skill.

Penalties and interest

Generally 20% for not declaring, 5% a month up to 50% for late payment, 20% for no books (Proc 62/1994 arts 63 to 65).

Cross-border points

Eritrean-origin income is taxed; citizens abroad pay the 2% tax. Customs is under Proc 112/2000 (Ministry of Justice list), not covered here.

Two worked examples that recompute

Case 1: top rate check. A 100,000 profit company pays 30,000.

name: Company
inputs:
  profit: 100000
steps:
  - tax: profit * 0.30
expected:
  tax: 30000.00

Case 2, a decision: sole trader or company at 100,000 profit? Bands against the flat rate.

name: Sole trader against company
inputs:
  income: 100000
steps:
  - band_1: min(income, 2400) * 0.02
  - band_2: (min(income, 14400) - min(income, 2400)) * 0.10
  - band_3: (min(income, 30000) - min(income, 14400)) * 0.20
  - band_4: (min(income, 42000) - min(income, 30000)) * 0.25
  - band_5: (income - min(income, 42000)) * 0.30
  - tax: band_1 + band_2 + band_3 + band_4 + band_5
  - company: income * 0.30
  - saving: company - tax
expected:
  tax: 24768.00
  saving: 5232.00

The person pays 24,768 and a company 30,000, before any dividend, which is exempt (art 31(5)).

Ask the client first

• Which tax?
• Person or company?
• Resident in Eritrea or a citizen abroad?
• Sector?

Sources

Source	URL	Read on
Income Tax Proclamation 62/1994, read in full (scan, OCR)	https://tile.loc.gov/storage-services/service/ll/lleritrea/eritrean-proc-62-1994/eritrean-proc-62-1994.pdf	2026-11-01
Proclamation 116/2001, read in full	https://tile.loc.gov/storage-services/service/ll/lleritrea/eritrean-proc-116-2001/eritrean-proc-116-2001.pdf	2026-11-01
Proclamation 117/2001, operative text and schedules read	https://tile.loc.gov/storage-services/service/ll/lleritrea/eritrean-proc-117-2001/eritrean-proc-117-2001.pdf	2026-11-01
UK Government translation of Proclamations 17/1991 and 67/1995, annexes 1 and 2 read	https://assets.publishing.service.gov.uk/media/5a7f32ff40f0b6230268e0c6/Eritrea-Appendix-I-II-III-V-Dec-2015.pdf	2026-11-01
Stamp Duty Proclamation 180/2017 (Ministry of Information), arts on rate and penalty read	https://shabait.com/2017/03/15/proclamation-no-180-2017/	2026-11-01
Ministry of Information notice on farm and livestock income tax, read in full	https://shabait.com/2016/12/02/legal-notice-on-farm-and-livestock-income-tax/	2026-11-01
Ministry of Justice, thematic list of domestic legislations, section 16 read	https://mojeritrea.net/wp-content/uploads/2023/05/Thematic-Categorization-of-Domestic-Legislations-of-the-State-of-Eritrea.pdf	2026-11-01

Scans were read by OCR and the key rate pages checked by eye. The Library of Congress item pages show a security check, which we did not pass; the PDFs came straight from its public file host. Scanned gazettes use "Birr" in 1994 and "Nakfa" in later amendments.

Not yet confirmed: Fiscal year dates (the old guide said calendar year; the texts read say only "Eritrean fiscal year"). Stamp duty schedule rates, farm tax rates and customs were not extracted. No published 2026 amendment, circular or form could be opened; the Ministry of Finance site did not connect. No official portal or online filing page could be opened either.