Afghanistan Tax Overview

Afghanistan tax system at a glance

• Overview of Afghanistan tax system — Afghanistan operates a self-assessment direct-tax system administered by the Afghanistan Revenue Department, built on the Income Tax Law 2009. Headline rates are flat: 20% on corporate income, a progressive but low-banded salary tax topping out at 20%, plus a turnover-based Business Receipts Tax instead of an operational VAT. (Income Tax Law 2009)
• National tax authority — Afghanistan Revenue Department (ARD), Ministry of Finance (Income Tax Law 2009 (https://ard.gov.af/))
• Tax (fiscal) year — Solar Hijri year, running approx. 21 December to 20 December (1 Jadi to end of Qaws) (approx — confirm; corporate years may differ by Gregorian conversion) (Income Tax Law 2009)
• Currency — Afghani (AFN / ؋) (Da Afghanistan Bank Law)
• Basis of taxation — Residents taxed on worldwide income; non-residents taxed on Afghan-source income only (Income Tax Law 2009)
• Top personal (salary) income tax rate — 20 percent (Income Tax Law 2009)
• Corporate income tax rate — 20 percent (flat on all legal persons) (Income Tax Law 2009)
• VAT / GST — No operational VAT; a VAT Law exists but implementation has been repeatedly deferred. Business Receipts Tax (BRT) on gross turnover applies in its place. (approx — confirm current VAT commencement status with ARD) (Value Added Tax Law (not yet in force); Income Tax Law 2009 (BRT))
• Business Receipts Tax (turnover tax) range — 2% to 5% of gross receipts depending on sector (general 4%) percent (Income Tax Law 2009)
• Annual income tax return deadline — Within 3 months after the end of the tax year (approx — confirm; extensions may apply) (Income Tax Law 2009)
• Business Receipts Tax filing frequency — Quarterly (Income Tax Law 2009 (https://ard.gov.af/820/quarterly-business-receipts-tax-brt-user-guides))