---
name: er-tax-overview
description: "Source-cited draft: tax overview for Eritrea (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/er-tax-overview"
  jurisdiction: "ER"
  tax_year: "2025"
  last_updated: "2026-07-13"
  review_status: "pending_review"
---

# Eritrea Tax Overview

## Eritrean tax system at a glance

Eritrea operates a source-based direct tax system administered by the Inland Revenue Department under the Ministry of Finance. The principal statute is the Income Tax Proclamation No. 24/2011; indirect tax is a sales/excise tax rather than a VAT.

- **Tax (fiscal) year** — Calendar year, 1 January to 31 December ((approx — confirm))  _(Income Tax Proclamation No. 24/2011)_
- **Currency** — Eritrean Nakfa (ERN / Nfk)  _(Bank of Eritrea / national currency)_
- **Tax authority** — Inland Revenue Department, Ministry of Finance  _(Ministry of Finance (Eritrea))_
- **Basis of taxation** — Primarily territorial / source-based — income arising in Eritrea is taxed; residents may be taxed more broadly ((approx — confirm))  _(Income Tax Proclamation No. 24/2011)_
- **Diaspora 'rehabilitation and recovery' tax** — 2% percent (on worldwide income of Eritrean nationals living abroad)  _([Proclamation on the 2% Rehabilitation and Recovery Tax (diaspora tax)](https://rivermate.com/guides/eritrea/taxes))_
- **Top personal income tax rate** — 30% percent  _([Income Tax Proclamation No. 24/2011](https://taxatlas.io/country/eritrea/income-tax))_
- **Standard corporate income tax rate** — 30% percent (approx — confirm; some sources cite 33%)  _([Income Tax Proclamation No. 24/2011](https://taxratesbycountry.com/tax-rates-in-eritrea/))_
- **Does Eritrea have VAT/GST?** — No VAT/GST. Indirect tax is a sales tax (goods) and services tax  _([Sales and Excise Tax Proclamation (Legal Notice 64/1994)](https://www.pwc.co.za/en/publications/vat-in-africa/eritrea-overview.html))_
- **Main annual filing** — Annual income tax return after the close of the calendar year ((approx — confirm exact due date))  _(Income Tax Proclamation No. 24/2011)_

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---

## Talk to a verified accountant

This guide is maintained by the OpenAccountants network — accountants who put
their name behind the tax answers AI gives people. The live, always-current
version (and the professional behind it) is at
[openaccountants.com](https://www.openaccountants.com).

- Use it in your AI: https://www.openaccountants.com/connect
- Meet the accountants: https://www.openaccountants.com/network

> **General reference only.** This document does not constitute tax, legal, or
> financial advice. Verify figures against the cited primary sources or with a
> licensed professional before relying on them.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `er-tax-overview` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/er-tax-overview. If neither is available, confirm every figure against the official source pages cited above before relying on it.