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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.229-13 Taxes—Foreign Contracts in Afghanistan.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause explains that work under this contract in Afghanistan is covered by a 2014 security agreement between the U.S. and Afghanistan, which exempts the U.S. Government and its non-Afghan contractors from most Afghan taxes and customs charges. Contractors must remove such taxes from the contract price and withhold Afghan income tax from Afghan employees' wages when required by Afghan law.

Applies to: Contractors and subcontractors performing contracts in Afghanistan in support of U.S. Forces, except Afghan legal entities or residents.

What it requires

  • Exclude Afghan taxes, customs, duties, fees, or similar charges from the contract price, except those charged to Afghan legal entities or residents.
  • Withhold tax from the wages of Afghan employees and remit payments to the appropriate Afghan taxing authority to the extent required by Afghan law.
  • Include the substance of this clause, including paragraph (c), in all subcontracts, including subcontracts for commercial products or commercial services.

Key terms: U.S. Forces · Security and Defense Cooperation Agreement · tax exemption · Afghan legal entities or residents · withhold tax

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 29.402-4(a), use the following clause:

Taxes—Foreign Contracts in Afghanistan (NOV 2021)

(a) Definition. U.S. Forces, as used in this clause, means the entity comprising the members of the force and of the civilian component, and all property, equipment, and materiel of the United States Armed Forces present in the territory of Afghanistan.

(b) Tax exemption. This acquisition is covered by the Security and Defense Cooperation Agreement (the Agreement) between the Islamic Republic of Afghanistan (Afghanistan) and the United States of America signed on September 30, 2014, and entered into force on January 1, 2015.

(1) The Agreement exempts the United States Government, and its contractors and subcontractors (other than those that are Afghan legal entities or residents), from paying any tax or similar charge assessed by the Government of Afghanistan on activities associated with this contract within Afghanistan if the activities are on behalf of or in support of U.S. Forces. The Agreement also exempts the acquisition, importation, exportation, reexportation, transportation, and use of supplies and services in Afghanistan, on behalf of or in support of U.S. Forces, from any taxes, customs, duties, fees, or similar charges imposed by the Government of Afghanistan.

(2) The Contractor shall exclude any Afghan taxes, customs, duties, fees, or similar charges from the contract price, other than those charged to Afghan legal entities or residents.

(3) The Agreement does not exempt Afghan employees of Government contractors and subcontractors from Afghan tax laws. To the extent required by Afghan law, the Contractor shall withhold tax from the wages of these employees and remit those payments to the appropriate Afghan taxing authority. These withholdings are an individual's liability, not a tax against the Contractor.

(c) Subcontracts. The Contractor shall include the substance of this clause, including this paragraph (c), in all subcontracts including subcontracts for ccommercial products or commercial services.

(End of clause)

Sections it refers to

  • 29.402-4 Taxes—Foreign Contracts in Afghanistan.

Sections that refer to it

  • 12.301 Solicitation provisions and contract clauses for the acquisition of commercial products and commercial services.
  • 29.402-4 Taxes—Foreign Contracts in Afghanistan.

← 52.229-12 Tax on Certain Foreign Procurements. · 52.229-14 Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement). →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.229-13 Taxes—Foreign Contracts in Afghanistan · SpendQuery