In the latest case, several US media outlets have reported that the Afghan government waives all tax claims on US and NATO military contractors. For example, in the newest issue, Anaksti News Agency writes that after months of voting, the Afghan government has finally decided to exempt all tax claims of NATO defense contractors in Afghanistan. “After years of continuous dialogue with the Afghan government, US contractors have achieved the greatest achievement, which is that contracting companies operating in Afghanistan are exempt from tax claims,” the report said.
“On May 5, 2021, the Afghanistan-NATO Comparative Commission, and the Joint Transportation Commission, the Government of the Islamic Republic of Afghanistan has finally decided to file all tax claims against foreign contractors,” the statement said. “Cancel their activities in Afghanistan.”
The news site also wrote that in the discussions between the United States, NATO, and Afghanistan, the focus was on whether the Afghan government would abolish the income tax on foreign employees and US and NATO contractors. Following the signing of several joint agreements between Afghanistan, the United States, and NATO in recent years, it was finally decided that all foreign contractors and their employees would be exempt from paying taxes to the Government of Afghanistan.
Based on Diplomatic Memorandum 202, signed in 2002 between the former Afghan government and the United States, it was decided that all civilian and military personnel, contractors, and their employees should not be subject to the tax process and equivalent costs in Afghanistan. Of course, this memorandum mainly included the number of contractors operating in Afghanistan.
NATO also reached a similar agreement with the Afghan government after signing a memorandum of understanding. Based on this memorandum, all NATO contractors will be exempted from paying taxes in the country. Although the Afghan tax government came up with different plans to subject US and NATO contractors to the tax payment process, the Afghan government eventually decided to exempt foreign workers from paying taxes.