Tax In Afghanistan

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Afghanistan is complying with the country’s tax system. As well as paying tax in Afghanistan, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. 

How do I calculate my taxable income: 

If you’re working in Afghanistan under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in AFN for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Afghanistan, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Afghanistan through PAYE is left with the prospect doing everything themselves.

Do you know much about Afghan Tax Law? Does Afghanistan have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Afghanistan can range from 0 to 20% percent, and you need to be sure you are placed in the correct tax brackets.

 

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Afghanistan, we can supply it to you free of charge. 

Using an Umbrella Company for Income Tax : 

Contractors in Afghanistan are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. An Afghan umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Afghan taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Afghan tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Afghanistan, many of whom are experts in tax and immigration laws. If you have any questions about tax in Afghanistan, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Afghani work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in AFN but without the overhead of directly dealing with the Afghani tax authorities. Get in touch with us today for some reliable advice on tax in Afghanistan!

 

When Do You Need to Lodge Your Tax Return?: 
Before 20 March of the following calendar year
Tax Filing Deadline : 
Any income tax payable must be paid when the return is filed. The deadline for taxpayers subject to fixed tax is the 15th day of the month following the end of each quarter.
Can you file it online? : 
No
Currency: 
Afghan afghani (AFN)
Tax-free Threshold in: 
AFN60,000
Grossed Income: 
0-60,000
Tax Rate: 
0%
Grossed Income: 
>60,000-150,000
Tax Rate: 
2%
Grossed Income: 
>150,000-1,200,000
Tax Rate: 
10% + AFN1800
Grossed Income: 
>1,200,000
Tax Rate: 
20% + AFN106,800

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