Do you know which kinds of receipts are non-taxable?

Overview

Generally, an amount included in your income is taxable unless it is specifically exempted by law. Taxable income must be reported on your return and is subject to tax. Nontaxable income may have to be shown on your tax return but is not taxable.

Non-Taxable Income

According to Article 14 of the Afghanistan Income Tax Law, the following receipts are exempt from income tax and are excluded from the tax returns of individuals and legal entities.

1. Grants, gifts, and awards of the state.
2. Grants, gifts, and awards of foreign governments, nonprofit organizations, or international organizations, for contributions to science, art, literature, social progress, and global understanding.
3. All scholarships, fellowships, and grants for professional and technical training.
4. Health, accident, and unemployment insurance benefits.
5. Life insurance that is paid on death.
6. Compensation or damages for personal injuries or sickness or restitution of reputation.
7. Acquisition of property in connection with mergers of domestic corporations and other legal entities
8. Acquisition of movable or immovable property through expropriation of property of debtors by creditors.
9. Any other receipts according to the provisions of the Income Tax Law.

Conclusion

While non-taxable income is uncommon, it’s important to be aware of its existence and understand the relevant regulations. Familiarity with these provisions, as outlined above, ensures proper handling of such income when it does arise.