Types Of Taxation In Afghanistan
Our core service is taxation support with the Ministry of Finance. There are five main tax areas in Afghanistan - rental withholding, wage withholding, contractor withholding, business receipts tax and annual income tax.
Our services include ensuring mandatory monthly, quarterly and annual filings are submitted correctly and on time. From obtaining tax exemption confirmations to remitting tax liabilities, we provide turn-key support to ensure compliance with the laws of Afghanistan.
The Government of the Islamic Republic of Afghanistan uses the official Afghan calendar, which falls 21 March to 20 March on the Gregorian calendar (except in leap years). Unless an exception is obtained, all taxes are required to be paid and filed based on the Afghan calendar. A date converter is available here.
The Ministry of Finance has announced the fiscal year will now move up by three months on the Afghan calendar. "Based on the amendment of Article 2 (7) of Public Finance and Expenditure Management Law, all taxpayers are hereby informed that the tax year will start at 1st of Jadi (21 December) and end at last day of Qaws (20 December) of the next solar year. Therefore, all taxpayers are kindly requested to prepare their 1391 tax returns and balance sheets by end of Qaws, and starting 1st of Jadi (21 December) submit them to the tax offices, in order to avoid fines/penalties. Deadline to submit 1391 tax returns is 20 March 2013 [instead of 20 June 2013].
All taxes must be calculated and paid in Afghani currency. To convert from a different currency to Afghani, the Ministry of Finance uses the official average buying exchange rates as published by the Central Bank of Afghanistan (Da Afghanistan Bank). A historical list of the official United States Dollars (USD) to Afghanistan Afghani (AFN) exchange rates is available here.
AFS provides the below resources from the Ministry of Finance for current AFS clients only, as a reference for discussion. AFS makes no guarantees as to the validity of the below documents. AFS is not the author and does not claim any rights to the below documents. The index numbers used for Resources and Taxpayer Guides matches the Ministry of Finance's document numbers, but the index numbers used for Form Instructions and Sample Forms were prepared by AFS to ease sorting. Please contact AFS if you have any questions or if you would like to contribute updated or missing documents.