Reported at 30% (TaxAtlas) to 33% (other secondary sources) - confirm current rate directly given limited independent verification available for this jurisdiction.
Progressive, 2% to 30-33% depending on source; a separate 2% 'diaspora tax' applies to Eritrean nationals living abroad on worldwide income.
No formal VAT; a sales tax applies at approximately 4% on goods and 10% on services.
An individual is resident if they have their habitual abode in Eritrea, generally applied in practice as presence for more than 183 days in a 12-month period, confirmed via two independent sources. Non-resident foreign workers are taxed only on Eritrea-source income.
Distinctive feature - the diaspora tax: Eritrean nationals living abroad are subject to a 2% "rehabilitation and recovery" tax on worldwide income, confirmed via TaxAtlas - a genuinely unusual policy globally, functioning similarly in concept (though far lower in rate) to the United States' citizenship-based worldwide taxation, but rare among other countries. This is a citizenship-linked obligation distinct from ordinary residency-based taxation and applies regardless of where the citizen actually lives or whether they meet Eritrea's own residency test.
No Controlled Foreign Company regime was identified in available sources this session. This is a genuine gap rather than a confirmed absence.
No statutory thin capitalization ratio was identified in available sources this session.
No domestic FBAR/Form 8938-equivalent requiring Eritrea residents to self-report their own foreign accounts was identified. Institutional-level CRS/FATCA participation status was not independently confirmed this session. Separately and independently of local law, US citizens and Green Card holders with Eritrea accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of local requirements - and should independently note that Eritrea's own diaspora tax (above) is a distinct, additional Eritrean obligation applying to Eritrean citizens specifically, not a substitute for or related to US filing requirements.
Eritrea has very limited treaty coverage, confirmed via TaxAtlas. A comprehensive named-partner list was not compiled this session.