Under the provisions of the Afghanistan Income Tax Law, Qualifying Extractive Industry Taxpayers [“QEIT”] is any person who holds a mining contract or a hydrocarbons contract. Accordingly, no exemption has been provided for the import of materials and equipment for mining activities. Besides, the import of materials and equipment for mining activities is subject to 4% Business Receipt Tax and 2% Fixed Tax.
- QEIT Tax Obligations:
- If a QEIT is a party to more than a mining license, the person shall be treated as if it were a separate person concerning each license
- If a mining license is renewed, the renewal shall be treated as part of the original license
- If a QEIT is a party to more than one mining license and incurs expenditure in relation to more than one license, the expenditure shall be apportioned based on the application of the expenditure.
- Business Receipt Tax:
The business receipts tax imposed under provisions of the Income Tax Law shall not apply to:
- Receipts of a QEIT from the sale of mineral substances that are subject to a mining license;
- Receipts of a QEIT from the sale of hydrocarbons that are subject to a hydrocarbons contract; or
- Receipts of a QEIT from the sale or transfer of a mining license or a hydrocarbons contract.