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6.5. Deduction of Cross-Border Payments and Non-Deductible Expenses

Generally, all business expenses are allowed as a deduction, unless specifically disallowed.

The following expense types are not deductible or have limited deductibility for Afghan tax purposes:

  • Gifts
  • Illegal expenditures
  • Donations/ charitable contributions
  • Additions to reserves for contingencies (other than bad debts, subject to conditions)
  • Personal expenses
  • Penalties/ fines
  • Taxes on income are not deductible, except Business Receipts Tax (BRT).