#

Ease of Doing Business in

Eritrea

Eritrea Download Profile (1658.3KB, pdf)
Region Sub-Saharan Africa
Income Category Low income
Population 5,227,791
GNI Per Capita (US$) 591
City covered Asmara

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 189 189
0
28.05 27.94 down
0.11
Starting a Business 186 185 down
1
46.36 46.16 up
0.20
Dealing with Construction Permits 187 186 down
1
0.00 0.00
-
Getting Electricity 141 145 up
4
54.33 53.43 up
0.90
Registering Property 178 178
-
35.26 35.26
-
Getting Credit 185 185
-
0.00 0.00
-
Protecting Minority Investors 165 166 up
1
35.00 35.00
-
Paying Taxes 147 144 down
3
56.82 56.82
-
Trading across Borders 189 189
-
0.00 0.00
-
Enforcing Contracts 121 121
-
52.75 52.75
-
Resolving Insolvency 169 169
-
0.00 0.00
-

DB 2017 Rank: 147

DB 2016 Rank: 144

Change in Rank: down3

DB 2017 DTF (% points): 56.82

DB 2016 DTF (% points): 56.82

Change in DTF (% points): 0.00

Indicator Eritrea Sub-Saharan Africa OECD high income
Payments (number per year) info_outline 30.0 37.9 10.9
Time (hours per year) info_outline 216.0 297.9 163.4
Total tax rate (% of profit) info_outline 83.7 46.0 40.9
Postfiling index (0-100) info_outline 96.8 53.4 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 1 24 30% taxable profit 8.09
Sales tax 12 96 5% purchases 73.66
Municipality tax on earnings 1 4% taxable profit 1.08
Municipality tax on land 1 1.85 per square meter land area 0.45
Municipality tax on property 1 1.75 per square meter building area 0.36
Garbage fee 1 0.4 per square meter building area 0.08
Vehicle tax 1 fixed fee 0.03
Personal income tax 12 96 0.00 withheld
Totals: 30.0 216.0 83.7
  • Taxes by type Answer
    Profit tax (% of profit) 9.2
    Labor tax and contributions (% of profit) 0.0
    Other taxes (% of profit) 74.5
    Answer Score
    Postfiling index (0-100) 96.8
    VAT refunds
    Does VAT/GST exist? No
    Frequency of VAT/GST refund submission N/A
    Does a VAT/GST refund process exist per the case study? N/A
    Restrictions on VAT refund process N/A
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A No VAT
    Time to obtain a VAT refund (weeks) N/A No VAT
    Corporate income tax audits
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 5.0 93.6
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Tax Appeal Tribunal
    Is the appeal authority independent? Independent department outside tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.