Tax is a mandatory contribution that is paid by the citizens of any nation to the government so that it can provide the essential public services. It is applicable to both nationals as well as expats. When a business gets established in a foreign nation, payment of corporate tax becomes a compulsion. Similarly, individuals earning within the tax slab of any nation needs to pay individual income tax based on the rules of that specific country. At this point, opting for a tax consultant acts as a better option that makes us aware of the taxation policy of the specific nation. A tax consultant is a person or an organization who helps business entities and individuals to understand and deal with the taxation structure, and reveal the legal ways of paying less tax.
Afghanistan, one of the fastest developing country in the world and the heart of the ASIA, has been a centre of attraction for businesses globally since 2001 Be it a start-up or an established business, Let’s have a deeper look.
Taxation in Afghanistan
Afghanistan is known for being a country with least taxes but in reality, different types of taxes get applied in companies, like:
Direct Taxes
- Companies operating in Afghanistan: 20%
Indirect Taxes
- Contractor Tax (Registered): 2%
- Contractor Tax (Un-registered): 7%
- Rental tax on Properties in Afghanistan: 10% & 15%
- Business Receipt Tax (VAT): 4% (in most cases)
Double Tax Treaties
Since the business at a global level takes between different nations, entering into double tax treaties becomes an advantage. A double tax treaty is an agreement that is signed by two countries to avoid double taxation on both the sides and encourage to develop business relations between nations. At this point of time Afghanistan has no double taxation treaty with any country.
Tax Consultants in UAE
Dealing with tax and filing tax returns is a complex process. The increasing number of businesses in Afghanistan has risen the number of tax consultants in the country. Tax advisors in Afghanistan have increased to a great number as compared to the earlier years.
Benefits of Opting for a Tax Consultant
Opting for a tax consultant for any firm is a decision of relief as they take the responsibility of dealing with the tax structure of your business. If you have just started your business or is planning to expand it in the international market, it turns out to be an advantageous option. Tax advisors plan and provide essential information and look into every aspect of business while dealing with the tax returns. Some of the benefits that an organization enjoys by opting for a tax consultant include:
- Tax advisors help to identify legal ways to pay less tax
- Saves time in preparing the tax returns
- Sorts the complicated computations
- Strategies are built to minimize the tax to be paid
- Up-to-date information is received regarding any changes in the taxation policy
VAFAS Taxation Services
At VAFAS, we dive into the business activities of our clients to understand the business structure, its dealings, and quality of sustainability. A proper understanding of the business environment helps us to deliver the services and fulfill clients’ needs at a faster pace. Some of the services provided by us include:
- Evaluation of tax returns
- Filing of BRT returns
- Tax investigation
- Tax structuring
- Corporate tax compliance
- Review and analysis of cross-border transactions and payments
Why VAFAS?
VAFAS is one of the top tax consultants in Afghanistan. We understand the company requirements and tailor solutions according to business needs. Our team of experts consists of individuals having high industry experience on the taxation front. We keep in mind the international tax standards while dealing with the taxation process and deliver the optimum service to our clients. To file your tax returns, do contact us – we’d be glad to assist you and help you in framing your business tax structure.