Accounting and tax
- Afghani resident companies incur a corporate tax rate at a variable rate of up to 20% and based on the income of the company. All legal entities must register for and file annual tax returns within 3 months following the end of the fiscal year;
- Annual audited financial statements and corporate tax returns must be submitted to the Afghanistan Revenue Department. Healy Consultants usually obtains an audit exemption for our Clients;
- A 20% withholding tax is applicable on i) dividends ii) interests and iii) royalties paid to both resident and non-resident companies;
- Capital gains tax is levied at a standard rate of 20% on the gross amount of income from the sale or transfer of capital assets;
- A quarterly business receipts tax is applicable at the rate of up to 10%. Such rate varies depending on the type of business the company is engaged in;
- Afghanistan resident companies and individuals settle their tax liabilities either by monthly payments, third party withholdings, or a combination of both;
- Companies in Afghanistan are allowed to carry forward their business losses for a period of up to 3 years. Carryback of losses is however not permitted;
- Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
- It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.
Legal and compliance
Healy Consultants Compliance Department guides our Client through legal and tax obligations.
- There is no minimum share capital requirement for an Afghanistan LLC, but any capital invested in the company must be divided in to shares. There must be at least one shareholder and one director and the company must have a registered business office, with a company secretary;
- An Afghanistan LLC requires a board of supervisors to meet annually to oversee the legal compliance of the company. This board must consist of at least two members, neither of which being on the board of directors for the company;
- All business entities must submit annual audited financial statements by March 31st of each year;
- The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants fee to project manage company de-registration is US$1,450. During this 6 months period it is mandatory to maintain a resident company secretary and a legal registered office.