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Eritrea

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About

Eritrea

Capital
Official languages
Population 
Currency

ISO 4217

Asmara

Tigrinya, Arabic, English

3,494,428 (as of July 2019)

Nakfa

ERN

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Economy

"Eritrea is a small country located in the Horn of Africa with a population of approximately 5.2 million people. The economy of Eritrea is largely based on agriculture, with the majority of the population engaged in subsistence farming. The country also has a small industrial sector, which is mainly focused on the production of food and beverages, textiles, and construction materials.

The GDP of Eritrea in 2019 was estimated to be $4.2 billion, with a growth rate of 4.2%. The inflation rate in 2019 was estimated to be 6.2%. The unemployment rate in 2019 was estimated to be 8.2%.

The main exports of Eritrea are gold, livestock, and textiles. The main imports of Eritrea are food, machinery, and petroleum products.

The World Bank has provided Eritrea with $1.2 billion in development assistance since 2000. The African Development Bank has also provided $1.2 billion in development assistance since 2000.

Overall, Eritrea has a small but growing economy that is largely dependent on agriculture and foreign aid. The country has seen some economic growth in recent years, but it still faces many challenges, including high unemployment and poverty rates."

Taxation

In Eritrea, both individuals and corporations are subject to taxation on their income, and the taxation system is administered by the Eritrean Tax Authority (ETA).


Personal Income Tax:

In Eritrea, individuals are required to pay a personal income tax on their income, including salaries, wages, and other sources of income. The tax rate is progressive, with rates ranging from 0% to 20%. The tax year in Eritrea runs from January 1st to December 31st.


Corporate Income Tax:

Corporations in Eritrea are also required to pay taxes on their income. The corporate income tax rate in Eritrea is a flat rate of 30%, and the tax year for corporations is the same as for individuals (January 1st to December 31st).


Process and Calendar for payments:

The tax payment process in Eritrea involves filing a tax return and paying the tax due within a specific deadline. For individuals, tax returns are due on April 30th of the following year, while for corporations, tax returns are due within four months after the end of the tax year.


In addition to income taxes, there are other taxes and fees that individuals and corporations may be required to pay in Eritrea, such as value-added tax (VAT) and social security contributions.


It's worth noting that the Eritrean tax system is complex and subject to change, and there are significant penalties for non-compliance. Additionally, Eritrea has been criticized by some international organizations for its taxation policies, particularly with regard to the taxation of its diaspora.


In summary, Eritrea requires both individuals and corporations to pay taxes on their income, with a progressive tax system for individuals and a flat tax rate for corporations. Tax returns are due within specific deadlines, and there are other taxes and fees that individuals and corporations may be required to pay.

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