Tolo What are the tax obligations of citizens, residents and investors in Afghanistan? This question is much harder to answer today than it was 18 months ago.
Both tax authorities and investors were trained and educated; for authorities to effectively and efficiently administer tax payments while for investors on their tax obligations. The taxpayer must acquire a tax identification number a unique number for every taxpayer.
All investors need to file their returns even if the returns are not taxable. Information provided by the taxpayers is kept confidential in the Ministry of Finance MoF unless authorized by law. The taxpayers are also required to maintain books and records using an accrual method of accounting.
Following are some main types of taxes in Afghanistan: The taxable year is the solar year except as otherwise provided in this Law.
The taxable income is the sum remaining after all the deductions and exclusions authorized in this Law and its regulations are deducted from the total of all receipts of the person, corporation, Limited Liability Company or organization.
The income tax of legal persons, corporations, limited liability companies, and general partnerships is 20 percent of its taxable income in the fiscal year.
Income in foreign money shall be converted to Afghanis for purposes of taxation. The rate of conversion shall be the average of free rates used by Da Afghanistan Bank to purchase such foreign money at the end of each month.
Withholding of Taxes All partnerships, organizations, agencies, departments, and enterprises of the State and municipalities; all corporations and limited liability companies employing two or more persons in any month of a year are required to withhold taxes as provided in Article 3 of Income Tax Law Full Law link provided at the end of this document from all salary and wage payments, and pay the amount withheld to the Government account.We developed a Revenue Trend Analysis System which tracks historical revenue by type and location over time.
This is an invaluable planning tool that we have used to help the Afghanistan Government develop evidence based revenue policy. Version 7 April AFGHANISTAN INCOME TAX LAW (consolidation to 31 March ) A translation of the Income Tax Act as .
Afghanistan Personal Income Tax Rate In Afghanistan, the Personal Income Tax Rate is a tax collected from individuals and is imposed on different sources of .
Helping Afghanistan to significantly increase domestic revenue collection, providing the foundation for more effective public services. Phase I: Phase I of our technical assistance focused on policy, legal and administration reform.
Afghanistan Investment Support Agencies: The site contains texts of Banking Law, Domestic and Foreign Investment Law, (December 6, ), Income Tax Law and Minerals Law.
Ministry of Finance, Afghanistan: This site maintained by the Ministry of Finance in Afghanistan contains important information on the tax and insurance laws .
The tax calculation of Afghanistan are as below. Currency used AFN according to Afghanistan Tax law.
Salary Tax calculation of Afghanistan. From 0 to AFN Exempted. From to 2% Tax will be deducted, From to 10% Tax will be deducted and, From and Above 20% Tax will be deducted or imposed.