Navigating the process of ceasing your tax residency in Eritrea can seem daunting, but with the right steps, it becomes manageable. Follow this guide to ensure you complete all necessary procedures accurately and efficiently.
Step 1: Determine Eligibility
First, evaluate if you meet the criteria for ceasing tax residency. This includes permanently leaving Eritrea and establishing residency in another country. Ensure you have documented evidence of your new residency status abroad.
Step 2: Notify the Eritrean Tax Authorities
You must inform the Eritrean tax authorities of your intention to cease your tax residency. This can be done by submitting a formal notification letter to the Inland Revenue Department, stating your departure date and new country of residence. Attach any supporting documents such as a residency certificate from the new country.
Step 3: Settle Outstanding Tax Liabilities
Before you can cease your tax residency, ensure all your outstanding tax liabilities are settled. This includes filing any pending tax returns and paying any due taxes. Obtain a tax clearance certificate from the Inland Revenue Department as proof that you have no outstanding tax obligations.
Step 4: Deregister from Local Authorities
Deregister from local authorities such as the municipality or local council where you were registered. This step may involve submitting a deregistration form and providing proof of your new residence abroad.
Step 5: Close Eritrean Bank Accounts
Close any local bank accounts or financial accounts in Eritrea. Notify your banks of your change in residency status and complete the necessary paperwork to close your accounts.
Step 6: Retain Documentation
Keep copies of all documents and correspondence related to ceasing your tax residency. This includes letters to and from tax authorities, tax clearance certificates, and any other relevant paperwork. These documents may be needed for future reference or in case of any disputes.
Legal References
- Income Tax Proclamation No. 155/2006
- Eritrean Civil Code
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