Contract Withholding Tax
Enter the current payment, the annual total to the contractor, the licence status and the contract sector.
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Overview
The result covers this payment. Include it in the total for the year, then check whether the contractor is likely to cross the annual threshold.
Rates in this version
The app shows zero when the annual total is below AFN 500,000 and is unlikely to exceed it. At the threshold or above, or when the total is likely to exceed it, the app applies these rates to the entire current payment:
- Valid licence: 2%.
- Unlicensed agriculture, industry or trade: exempt from the 7% withholding under sector relief.
- Other unlicensed sectors: 7%.
Calculation method
Multiply the gross current payment by the applicable rate.
Worked examples
- Valid licence: AFN 2,500,000 × 2% = AFN 50,000.
- Unlicensed services without sector relief: AFN 1,000,000 × 7% = AFN 70,000.
US dollar amounts
Use one currency for the payment and annual total. The calculator converts USD to Afghanis and checks the threshold in Afghanis.
Da Afghanistan Bank’s daily cash-buy rate for US dollars is an indication for current estimates. For a past payment, enter the rate applicable to that period or use a documented amount in Afghanis.
The app fills the rate automatically only when the source clearly dates it to today in Kabul. An older quote needs your confirmation or an edit. Confirmation records your choice and does not make the quote current or suitable for tax purposes.
Enter a rate manually if the source is unavailable or its publication date is missing, ambiguous or in the future. You can always enter or edit a rate, and a late response will not overwrite it. Telegram is not an automatic fallback.
Publication date, the time the rate was retrieved and the age of the cached response are separate. Serving a cached response keeps the original retrieval time. Quote age is shown in Kabul calendar days.
The result and its copied text keep the exact rate, publication date when available, and how the rate was selected. After Kabul midnight, automatic use requires a fresh date check. A completed result stays as calculated.
Treatment of the withholding
The 2% is an advance creditable against income tax. The 7% for an unlicensed contractor is final. The guidance discusses all payments in the year once the threshold is reached or expected to be exceeded. This calculator only calculates the entered payment.
Rounding
The calculation runs before rounding. The final result displays two decimal places.
Limits
Check earlier payments separately. Sector relief requires review of the activity, licence and contract documents.
Rules version
contract-1402-v2 refers to Guide 21 and the sector relief under decree 3758 dated 23 Shawwal 1444, announced in 1402.