If you are wanting to do business in Eritrea, you have to know about taxation for a LLC which is the most common company structure in Eritrea.

Eritrea imposes a tax on income made internationally independently then it it was earned within the borders. Thepredominant percentage for income remitted, from our research, but seek professional advice, is 0%. Taxes are lower than average in Eritrea because the rate which LLC will pay tax is 34%. This ranks Eritrea as 165th overall in terms of CIT globally. . .

The VAT rate in ER is 4.00%, which ranks Eritrea as 165th overall in terms of VAT taxation rate internationally. In terms of other taxation, an employer will contribute % to the equivalent of a social security fund and an employee will contribute %. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 96hours. Contributing to this is the number of yearly labor tax payments, which is 18 in ER.

Thin cap rules aren't in play. Thin capitalisation refers to any type of laws on a business and the debt-to-asset ratios. A dividend is a distribution of a portion of a company's earnings, passed by by the board, to a particular class of shareholders.Dividends can be either cash payments, shares of stock, or other property. The capital gains rate in ERis 0%. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest witholding rate is estimated at 10%Which means that the tax authorities expects legal entities to withold 10% of money remitted abroad on interest payments. The dividends witholding rate is 0%This should be interpreted usually that the relevant tax authorities expects legal entities to pay tax on at least 0% of payments abroad on dividend payments. The royalties witholding rate 10% This should be interpreted usually that the taxman expects relevant legal entities to pay tax on at least 10% of money remitted abroad for royalty payments.
There is no known tax on wealth in Eritrea. There are no known inheritance taxes in Eritrea. There are not many well know R&D intitiatives that provide tax relieft in ER.

The above is not tax or legal advice for your individual facts and circumstance. We can to point you to an accountantin Eritrea who can properly advise you. Click incorporate now if you are in a hurry, or press the free consultation button above.