1. UNCLASSIFIED/FOUO USFOR Afghanistan COMISAF Tax Exemptions 2011 COMISAF Letter of Interpretation, dated 9 Mar 2011 pursuant to Article 7 of the Military Technical Agreement (MTA) and nullifies the 2008 Letter of Interpretation Local Contractor – any commercial enterprise owned by an Afghan citizen or permanent resident; any commercial enterprise that only conducts business in Afghanistan; or any commercial enterprise headquartered in Afghanistan Local Contractor Tax Exempt Status – a local contractor is NO longer tax exempt for profits earned from NATO/ISAF contracts as of 21 March 2011 Local Contractor RETAINs tax exemption status for tax or duties, sales or other taxes, import fees, or fees of any kind on the goods, materials, supplies acquired and services provided for the use of NATO/ISAF, NATO member States, and non-NATO member States participating in the ISAF

2. UNCLASSIFIED/FOUO USFOR Afghanistan USFOR-A Tax Exemptions TBP

3. UNCLASSIFIED/FOUO USFOR Afghanistan RCC Memorandum for Record (MFR) Vendor must request the RCC MFR IAW the 2011 COMISAF Letter of Interpretation, dated 9 Mar 2011 pursuant to Article 7 of the Military Technical Agreement (MTA) and nullifies the 2008 Letter of Interpretation reference Afghanistan taxation RCC MFR shall annotate the vendors exact name per the AISA and/or the Ministry of Commerce and Industry license(s); AISA and/or Ministry of Commerce and Industry license number; JCCS ID Number; Contract Number; Contract Start Date; Contract End Date; Contract Value; the income of which is claimed to be exempt from taxes; and, Description of Services rendered RCC MFR shall be signed by the RCC Chief, RCC Deputy Chief or RCC Chief’s representative Vendor submits RCC MFR to Ministry of Finance, who determines the tax exemption (if any), and will also specify which tax types are exempt (if any) Ministry of Finance (MoF) Taxpayer Information Page at www.mof.gov.af/taxwww.mof.gov.af/tax

4. UNCLASSIFIED/FOUO USFOR Afghanistan Income Tax Law of 2009 The income tax applicable to most companies doing business in Afghanistan under the Tax Law is primarily comprised of the following: Business Receipts Tax (BRT) of 2%-10% of gross revenue depending on the industry. Most contractors would qualify for the 2% rate (Revenue Tax) Profit Tax of 20% of net profits after allowable expenses (Profit Tax) Obligation to withhold from landlords at between 0%-15% (Landlord Withholding) Obligation to withhold from employees up to 20% (Employee Withholding) Obligation to withhold from subcontractors, vendors or suppliers providing goods or services within Afghanistan, at either 2% or 7% (Subcontractor Withholding)