Afghanistan Corporate Income Tax

Corporate income tax

Afghan companies and other legal persons pay a flat 20% corporate income tax on taxable profit under the Income Tax Law 2009, in addition to the Business Receipts Tax levied on gross turnover. Withholding obligations apply to dividends, interest, royalties, rent and contractor payments.

• Corporate income tax rate — 20% flat percent (Income Tax Law 2009)
• Rate applies to — All corporations and limited-liability companies regardless of size or sector (Income Tax Law 2009)
• Tax base — Net taxable income (gross income less allowable business deductions) (Income Tax Law 2009)
• Business Receipts Tax (separate from CIT) — Levied on gross receipts before deductions; 4% general, 2% / 5% for certain sectors percent (Income Tax Law 2009)
• Withholding tax on dividends — 20% percent ((approx — confirm current rate)) (Income Tax Law 2009)
• Withholding tax on interest — 20% percent ((approx — confirm current rate)) (Income Tax Law 2009)
• Withholding tax on royalties — 20% percent ((approx — confirm current rate)) (Income Tax Law 2009)
• Withholding on contractor payments (licensed firm) — 2% of the gross contract payment percent (Income Tax Law 2009)
• Withholding on contractor payments (no business licence) — 7% of the gross contract payment percent (Income Tax Law 2009)
• Withholding tax on rent — 20% where monthly rent exceeds 15,000 AFN (10% for lower amounts) percent ((approx — confirm tiers)) (Income Tax Law 2009)
• Loss carry-forward — Trading losses may be carried forward (commonly up to 3 years) ((approx — confirm carry-forward period)) (Income Tax Law 2009)
• Corporate return filing deadline — Within 3 months after the end of the tax year ((approx — confirm)) (Income Tax Law 2009)
• Corporate tax payment — Balance due with the annual return; BRT paid quarterly (Income Tax Law 2009)