Afghanistan

Afghanistan operates a moderate tax regime with a top personal income tax rate of 20% and a corporate tax rate of 20%. While not the lowest globally, the rates remain competitive within the region. Capital gains are subject to a 20% tax rate. Investors should factor this into their planning, particularly for significant asset disposals. Afghanistan taxes residents on their worldwide income, including foreign-sourced earnings. This means income from overseas employment, investments, and business activities is subject to domestic tax rates, though double taxation treaties may provide relief. Afghanistan permits dual citizenship, which provides flexibility for tax planning through establishing residency in a second jurisdiction without forfeiting existing citizenship rights.