On 28 January 2018 the Ministry of Finance of Afghanistan announced approval of new rule of tax penalty exemption to all tax payers.
The new rule of the Ministry of Finance states that all taxpayers who have not cleared their taxes for the past years and have not paid the tax penalties during FY-1381 (2002) through 1396 (2017), now are required to pay all their taxes and pay only 5% of tax penalty, while the 95% remaining of it will be relieved. This rule will be effective immediately and will be valid for 9 months and cannot be extended. Since this rule is only valid for nine months, all tax payers in Afghanistan are encouraged to avail this limited opportunity.
Mr. Habib Zadran, General Director of Revenue in his interview with Ariana TV further elaborated that the amnesty will be effective immediately. He added that this is an attempt by the Afghan Government to provide relief to investors, improve business climate and attract more investors. Mr. Zadran further added that the tax system was not very clear for most of tax payers and this will be an opportunity to clear their taxes by paying all their back taxes and only 5% of the penalties.
This is going to be an excellent opportunity for all tax payers to clear their taxes and get their licenses renewed on time as most of the three year valid licenses issued to the USG/NATO contractors pursuant to BSA have either expired or are about to expire.
SHAJJAN & ASSOCIATES will continue to monitor any further development in this regard. Please let us know if you any question in this regard.