Investment incentive in Eritrea

The investment policy of Eritrea provides the following incentives for foreign and domestic companies;

Both local and foreign private sector are allowed to participate in all sector of the economy with no restriction and discrimination
Priority foreign exchange allocation given to exports
Up to 100% retention of foreign currency earning
No taxes on dividends declared
Capital goods, intermediates, industrial spare and raw materials are subject to nominal customs duty of 2%
Raw materials and intermediate inputs are subject to 3% sales tax, however all sales tax will be rebated on all materials and inputs that have been used for export production
Exports are exempted from export duties and sales taxes
Profit derived from mining activities will be taxed as per the mining legislation
Corporate profit that is set aside from reinvestment taxed at the rate of 20%

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