Afghanistan’s Ministry of Finance announced a new tax relief package for individuals, legal entities, and organizations as part of its ongoing tax reform efforts, based on a special directive from the country’s leadership.
Under the new measures, income tax for all legal and non-profit entities, excluding mining companies, as well as hospitals and healthcare centers, has been reduced to 10 percent from the previous 20 percent.
The ministry also raised the tax exemption threshold for individuals, exempting those with annual incomes of up to 120,000 afghanis from taxation. Previously, the exemption limit was set at 60,000 afghanis.
In addition, the property transfer tax has been cut from 1 percent to 0.5 percent. The ministry said the new measures provide tax reductions of up to 50 percent in some areas, with the aim of supporting economic activity and reducing the financial burden on taxpayers.