US/NATO Contractors are Tax Exempt in Afghanistan

January/16/2017


The US/NATO Contractors were allowed to enjoy certain tax exemptions pursuant to diplomatic notes, MTA and SOFA Agreements but yet the Contractors were facing a lot of ambiguities and difficulties throughout the process. Thus, a working committee was established between Afghan government, the U.S. Government and Resolute Support to overcome the obstacles. After months of discussions the committee agreed that all prime and subcontractors of US and RS operating in Afghanistan are tax exempt except for the penalties of late submission of their annual income tax return and other required tax documents. The Committee agreed to prepare a list of thirty companies that the Ministry of Finance should halt the process of receiving tax from, and unfreeze their bank accounts and exclude them from no fly list.