TREATIES AND OTHER INTERNATIONAL ACTS SERIES 18-728

________________________________________________________________________

FOREIGN ASSISTANCE

Provision of Tax Exemptions

Agreement Between the 

UNITED STATES OF AMERICA

and AFGHANISTAN

Signed at Kabul July 27 and 28, 2018
 

NOTE BY THE DEPARTMENT OF STATE

 Pursuant to Public Law 89—497, approved July 8, 1966

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued

under the authority of the Secretary of State shall be competent

evidence . . . of the treaties, international agreements other than

treaties, and proclamations by the President of such treaties and

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime

jurisdiction, and in all the tribunals and public offices of the

United States, and of the several States, without any further proof

or authentication thereof.”
 

 AFGHANISTAN

 Foreign Assistance: Provision of Tax Exemptions

 Agreement signed at Kabul July 27 and 28, 2018;

 Entered into force July 28, 2018.
AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF 

AMERICA AND THE GOVERNMENT OF THE ISLAMIC .REPUBLIC OF 

AFGHANISTAN REGARDING THE PROVISION OFTAX EXEMPTIONS FOR 

ASSISTANCE 

The Government ofthe United States ofAmerica and the Government ofthe Islamic Republic of 

Afghanistan: 

Recognizing the interests ofthe Government ofthe United States ofAmerica ("United States") 

and the Government ofthe Islamic Republic ofAfghanistan ("Afghanistan") (collectively the 

'"Parties") in cooperating to facilitate the provision ofeconomic, technical, and humanitarian 

assistance to benefit the people ofAfghanistan; . 

Have agreed as follows: 

Article 1- Scope 

1. Except as provided herein, this Agreement covers economic, technical, and humanitarian 

assistance, as well as other related assistance as may be decided by the Parties, that may be 

fumlshed by the United States in Afghanistan. The furnishing ofsuch assistance shall be subject 

to applicable United States laws and regulations. Such assistance may be made available in 

accordance with specific arrangements agreed upon by representatives ofthe appropriate agency 

or agencies ofAfghanistan and representatives ofthe agency designated by the United States. 

The assistance made available by the United States may be implemented by non-governmental 

organizations, individuals, private firms, public international organizations or other entities. 

2. None ofthe terms ofthis Agreement shall eliminate, restrict or otherwise diminish the rights 

and exemptions provided in existing agreements between the United States and Afghanistan. 

This Agreement shall not apply to assistance provided under (a) any program or project 

agreement under the Point Four General Agreement for Technical Cooperation Between the 

Royal Afghan Government and the Government ofthe United States ofAmerica, signed at 

Kabul on February 7, 1951, such as the Strategic Objective Grant Agreement between the United 

States ofAmerica and the Islamic Republic ofAfghanistan, signed on September 19, 2005; or 

(b) any letter ofagreement on police, criminal justice, and counternarcotics support programs 

between the Parties. 

3. The terms "assistance" and "United States assistance" as used herein refer to all assistance 

covered by paragraph 1 ofthis Article L 

4. The term "contractor" as used herein includes a subcontractor, and the term ''grantee" as used 

herein includes a subgrantee, but in each case only with respect to the subcontractor or 

subgrantee's activities that are carried out in connection with United States assistance. 

5. For purposes ofthis Agreement, "nationals" are citizens or permanent residents of 

Afghanistan who are not citizens or permanent residents ofthe United States. 
Article II - Exemptions 

In order to ensure the maximum benefits to the people ofAfghanistan from the assistance 

furnished by the United States: 

1. Any goods, supplies, materials, equipment, property, services, or funds financed by the United 

States and introduced into, acquired, used or disposed of in, or exported fro~ Afghanistan by 

the United States, or by any person or entity (including but not limited to contractors and 

grantees and their employees) as part of, or in conjunction with, United States assistance shall be 

exempt from any and all taxes, including value-added taxes or other similar charges related to the 

use ofsuch goods, supplies, materials, equipment, property, services or funds. Such goods, 

supplies, materials, equipment, property, services or funds imported into Afghanistan shall also 

be exempt from any and all tariffs, dues, fees, including demurrage and storage fees, customs 

duties, profit, import or export taxes, invesnnent or deposit requirements or other similar taxes, 

dues, fees, or charges and from currency controls. Such goods, supplies, materials, equipment, 

property, services, or funds may be exported or re-exported from Afghanistan or sold or 

transferred to another person or entity in Afghanistan that is exempt from taxation and shall be 

exempt from any and all taxes, including value-added taxes or other similar dues, fees, charges, 

tariffs and customs duties on such export, re-export, sale or transfer. The foregoing exemption 

does not include charges for specific services provided. 

2. No tax (whether in the nature of an income, profit, business, value-added, gross receipts, sales 

or other tax, duty, dues or fee ofany kind) shall be imposed upon any person or entity (including 

but not limited to contractors and grantees) in connection with income, revenues, profits or 

receipts received in connection with activities carried out as part ofUnited States assistance; 

provided, however, that this will not preclude the imposition ofincome or profit taxes on 

nationals or national entities ofAfghanistan for activities financed by United States assistance. 

3. All personnel (and family members forming part oftheir households), except nationals, whom 

the United States employs (whether by contract or other arrangement) or finances (whether by 

contract, grant or otherwise with any person or entity, including employees ofcontractors and 

grantees) and who are present in Afghanistan to perform work in connection with United States 

assistance, shall be exempt from: 

(a) Income taxes~ social security taxes, or other taxes levied, imposed, or assessed under the laws 

ofAfghanistan or any subdivision thereof with respect to income derived from United States 

assistance activities; 

(b) Taxes (including, but not limited to, sales or value-added taxes) on the acquisition, 

·ownership, use, or disposition ofpersonal movable property (including vehicles) intendCd for 

their own use; and 

(c) Customs, import, and export duties on all personal effects (including vehicles), goods, 

equipment, supplies, services, or funds imported into Afghanistan for their own use, and from all 

other duties and fees ofwhatever nature, except charges for specific goods or services rendered. 
4. The access and movement ofaircraft operated by or for the United States in connection with 

United States assistance in Afghanistan shall be exempt from landing fees, tolls and similar 

charges by Afghanistan or any subdivision thereot: except for specific services provided. 

5. The exemptions provided in this Article shall apply to all activities described in this Article 

that occur on or after the effective date ofthis Agreement, regardless ofwhen the assistance 

furnished by the United States was initiated. 

Article III 

Ifa tax has been levied and paid contrary to the provisions ofan exemptio~ the United States 

may, in its discretion, pursue appropriate remedies, such as 

(a) require Afghanistan to refund to the United States or to others as the United States may direct 

the amount ofsuch tax with funds other than those provided by the United States, or 

(b) other remedies consistent with applicable law. 

Artic1e IV 

In the event of a disagreement about the application ofan exemptio~ the Parties agree to meet 

promptly and resolve such matters, guided by the principle that the assistance furnished by the 


United States is free from direct taxation. 


Article V 


This agreement may be amended by written consent ofthe Parties. 


This agreement shall enter into force upon signature by both Parties, with effect from June 1, 


2018. It shall remain in force unless terminated by either Party with six months' advance written 


notice to the other Party. 


Done at Kabul, Afghanistan this 27th day ofJuly, 2018 in duplicate, in the English and Dari 


languages. In case ofdispute, the English text shall take precedence. 

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF THE 

THE UNITED STA TES OF AMERICA: ISLAMIC REPUBLIC OF 

United States Ambassador 

AFGHANISTAN: 


Professor Mohammad Humanyon Qayoumi 

Acting Minister of Finance 

to the Islamic Republic ofAfghanistan 

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