Afghanistan's taxation system has undergone significant reforms in recent years. The key components of the taxation landscape in Afghanistan include:

 

Income Tax

The Income Tax Law outlines the taxation of individual and corporate income in Afghanistan.

 

• Individuals are subject to progressive income tax rates ranging from 2% to 20%, depending on their taxable income level.

• Corporations, including branches of foreign companies, are subject to a flat corporate income tax rate of 20%.

• Various tax incentives and exemptions are available for certain industries, investment activities, and reinvestment of profits.

 

Customs Duties

• The Customs Law and associated regulations

• Customs duties are levied on imported goods, with rates ranging from 0% to 30% based on the tariff classification.

• Various customs exemptions and duty-free provisions may apply, depending on the nature of the goods and the purpose of import/export.

 

Other Taxes

• Withholding tax is applicable on certain payments, such as salaries, dividends, interest, and royalties

• Property tax is levied on the ownership or transfer of immovable properties

• Fixed taxes are imposed on specific business activities, such as telecommunications, financial services, and natural resource extraction