How Corporate Income Tax Calculator works
The July 2026 tax announcement reduced the general rate for qualifying registered legal entities from 20% to 10%, except mining extraction enterprises. Enter taxable profit, not gross revenue.
Reduced-rate eligibility may require formal registration and electronic tax compliance. Credits, previous assessments and audit exceptions are not automatically applied.
Practical tax guidance and worked considerations
Calculate from taxable profit instead of turnover
Enter the company's qualifying annual taxable profit after correctly identifying deductible and non-deductible costs. A business with AFN 5 million of sales and AFN 4 million of qualifying costs does not normally have the same income-tax base as a business with AFN 5 million of taxable profit. Receipts-based levies, withholding credits and other business taxes require separate treatment.
Understand the revised 10 percent announcement
The July 2026 government announcement reduced the general income tax rate for eligible legal entities from 20% to 10%, expressly excluding mining extraction companies. As a simple illustration, 1,000,000 AFN of qualifying taxable profit at 10% gives 100,000 AFN before credits or adjustments. Whether a specific company, period or activity qualifies needs confirmation.
Verify sector exceptions and filing records
Keep the profit calculation, financial statements, company registration, period, loss history and any evidence of advance tax payments. Review the July 2026 official statement and the corporate tax guidance before treating the calculated figure as payable.
Other Afghan tax tools
Frequently asked questions
What is the general revised corporate rate?
10% on qualifying annual net taxable profit.
What was the earlier rate?
20%.
Are mining extraction enterprises included?
No. The announced reduction excludes mining extraction companies.
Is gross turnover the tax base?
No. This module uses entered taxable profit.
Does a business still pay BRT?
It may. Business Receipts Tax has a separate calculation base.
Is the reduced rate automatic?
The cited guidance ties application to registration and formal compliance obligations.
Should I enter revenue or net taxable profit?
Enter annual net taxable profit. Gross revenue alone is not the correct base for a simplified corporate income tax calculation.
What is the revised general corporate rate?
The modeled July 2026 reform reduces the rate for qualifying entities to 10%.
Why does the calculator still offer a 20% corporate rate?
The earlier schedule and the mining extraction exception can require 20%, depending on the entity and applicable period.
What is the estimated tax on 5 million AFN of qualifying corporate profit?
At 10%, the simplified estimate is 500,000 AFN before credits and other adjustments.
How does the mining extraction exception work in this calculator?
Selecting mining extraction retains the modeled 20% rate rather than applying the general July 2026 reduction.
Does the lower rate require company registration?
Public reform guidance links eligible treatment to business formalization and compliance conditions that should be independently verified.
Are tax-deductible expenses calculated automatically?
No. The tool expects an already established taxable-profit amount and does not classify deductions.
Can BRT apply in addition to corporate income tax?
Yes. BRT and income tax have different bases, so a business may need to consider both separately.
What about import withholding tax already paid?
Certain advance customs tax payments can be creditable; the simple calculator does not automatically reconcile tax credits.
Can historical finalized assessments use the new corporate rate?
Not automatically. Transitional provisions can exclude earlier finalized assessments and some audit adjustments.
Does this calculator handle loss carryforwards?
No. Permitted carried losses and other complex adjustments must be reflected before entering taxable profit.
How are subsidiaries or branches treated?
Corporate status, permanent establishment issues and relevant legal registration determine the applicable tax position.
When must a corporate income tax return be filed?
Published older guidance refers to filing within three months after fiscal year-end; consult current Ministry instructions.
Can the result be used as a bank or audit certificate?
No. It is a browser-based estimate rather than an official financial statement, audit opinion or tax clearance.
Official tax rules and conditions should be confirmed with the relevant authority. July 2026 implementation analysis · Ministry of Finance guidance library.
These tools are provided as general estimates, not official tax assessments. Last substantive rules review: October 2026.