AF · Asia · AFN

Afghanistan

Tax rates

0102030405060World avg (corporate) 22.6%Wealth Tax 0%Income · Corporate · Capital Gains — 20%

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Brackets, notes & in practice

Income Tax

Thresholds in AFN
ThresholdRate
AFN 00%
AFN 5,0012%
AFN 12,50110%
AFN 100,00020%
Source: Afghanistan Revenue Department — Income Tax Law (ITL), Consolidated to December 2016, Article 4(3) · as of 2016-12-01

Thresholds are stated on a monthly basis in the Income Tax Law's own schedule.

Article 4(3) sets a progressive monthly schedule for natural persons: 0% up to Afs. 5,000, 2% from Afs. 5,001, 10% plus a fixed amount from Afs. 12,501, and 20% plus a fixed amount of Afs. 8,900 from Afs. 100,000 and above — the top statutory rate.

Capital Gains Tax

Capital gains on assets held for 18 months or more are averaged over the ownership period, added to the taxpayer's other income, and taxed under the ordinary personal income tax schedule, which has a top rate of 20%. The resulting effective rate has a floor of 2%.

In practice

Exemptions

Gains from the sale, exchange, or transfer of movable or immovable property acquired by inheritance are excluded from capital-gains taxable income under Article 23(2) of the Income Tax Law; the Article 23 capital-gains charge otherwise reaches only gains on trade or business assets (including goodwill), factories and their land, transport-business equipment, or corporate shares under Article 23(1).

Source: Afghanistan Revenue Department — Income Tax Law (ITL), Consolidated to December 2016 · as of 2016-12-01

Wealth Tax

No net wealth tax identified in Afghanistan's tax framework. The official Afghanistan Revenue Department's published list of tax laws comprises the VAT Regulation, the Income Tax Law, and the Tax Administration Law; no wealth or net-worth tax law is among them.