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

FAR 52.229-14 Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement).

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 contracts performed in Afghanistan under the NATO Status of Forces Agreement are exempt from most Afghan taxes, customs, and similar charges. Contractors must remove such taxes from the contract price, except for taxes owed by Afghan legal entities or residents, and must withhold Afghan income tax from Afghan citizen employees. The clause must also be included in all subcontracts.

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

What it requires

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

Key terms: North Atlantic Treaty Organization (NATO) Forces · Status of Forces Agreement (SOFA) · Afghan legal entities or residents · withhold tax · subcontracts

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(b), use the following clause:

Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement) (NOV 2021)

(a) Definition. North Atlantic Treaty Organization (NATO) Forces, as used in this clause, means the Members of the Force, Members of the Civilian Component, NATO Personnel and all property, equipment, and materiel of NATO, NATO Member States, and Operational Partners present in the territory of Afghanistan.

(b) Tax exemption. This acquisition is covered by the Status of Forces Agreement (SOFA) entered into between NATO and the Islamic Republic of Afghanistan (Afghanistan) issued on September 30, 2014, and entered into force on January 1, 2015.

(1) The SOFA exempts NATO Forces 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 within Afghanistan if the activities are on behalf of or in support of NATO Forces. The SOFA also exempts the acquisition, importation, exportation, reexportation, transportation, and use of supplies and services in Afghanistan on behalf of or in support of NATO Forces from all Afghan taxes, customs, duties, fees, or similar charges.

(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) Afghan citizens employed by NATO contractors and subcontractors are subject to Afghan tax laws. To the extent required by Afghan law, the Contractor shall withhold tax from the wages of these employees and remit those withholdings 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 commercial 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.

← 52.229-13 Taxes—Foreign Contracts in Afghanistan. · 52.230-1 Cost Accounting Standards Notices and Certification. →

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 52.229-14 Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement) · SpendQuery