Afghanistan Tax Reform Includes Tax Rate Reductions

The Afghanistan Revenue Department published Guidelines for Implementing Tax Reductions and Adjustments on 14 July 2026, covering the implementation of recent tax reforms. The main changes include the following:

• The Corporate Income Tax rate is reduced from 20% to 10%, although the 20% rate remains applicable for companies involved in mining extraction;
• The annual individual tax brackets are adjusted with a higher tax-exempt threshold, the elimination of the 2% bracket, and a reduction in t…