Afghanistan: Classified Contractors to Receive Financial Certainty

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By Jennifer Kies Mammen, Andrew Schoulder

Since 2015, defense contractors supporting US and NATO forces in Afghanistan under classified contracts have been practically foreclosed from receiving the tax and corollary benefits intended by the Bi-Lateral Security Agreement (BSA) and NATO Status of Forces Agreement (SOFA) due to conflicts between Afghan policies and US/NATO national security obligations.

After years of consternation, on or about May 18, 2018, the US Embassy, Kabul, provided notice that the Afghan Minister of Finance approved a new tax exemption protocol that eliminates the requirement for BSA/SOFA contractors to provide copies of their government contracts or subcontracts – full or redacted.

By: Bryan Cave Leighton Paisner

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