Accounting and tax

Afghanistan corporate tax

  • Corporate tax regime

    • The standard corporate tax rate for Afghan companies is 20%.
    • Income tax returns must be submitted, along with a balance sheet, annually.
    • Should a company incur a loss, the loss can be deducted from the taxable income over the following three years.
    • Afghanistan mandates that all companies conform to the same tax year, which runs from 21 December to 20 December the following year.
  • Withholding taxes

    • Withholding tax is 20% for dividends, interest and royalties.
    • Capital gains is taxed at a flat 20%. Additionally, 1% capital gains tax must be paid for any income gained from the sale of movable or immovable property.
  • Other tax considerations

    • Healy Consultants Group PLC can assist our Client meet their accounting and tax obligations in Afghanistan for an average monthly fee of US$960.
    • Audited financials are mandatory each year and must be submitted to the Afghanistan Revenue Department.
    • Afghanistan conforms to global IFRS accounting standards.

Legal and compliance

  • Company regulation

    • An Afghanistan LLC can be incorporated with a minimum of 1 director and 2 shareholders of any nationality.
    • An Afghanistan LLC additionally requires that a locally-domiciled company agent and board of supervisors are appointed.
    • Afghanistan’s primary business entity types, LLC, Corporation or Partnership do not require a minimum paid up share capital.
  • Other business regulations

    • Afghanistan is an Islamic country, which means the country conforms to sharia law.
    • Foreign investors will need to confirm that they do not hold any previous criminal record.
    • Afghanistan has an underdeveloped legal system which increases bureaucracy challenges, leading to officials requesting bribes to get things completed in a timely manner.
    • The underdeveloped legal system raises further challenges when individuals requires the judiciary system to settle disputes, more so when the plaintiff/defendant are foreigners.
    • Intellectual property protection is a new field in Afghanistan. Despite this, the country is a member of the World Intellectual Property Organization (WIPO).

Contact us

For additional information on our accounting and legal services in Afghanistan, please contact our in-house country expert, Ms. Evgeniya Salamonava, directly:
Consultant at HC - Evgeniya
  • Ms. Evgeniya Salamonava
  • Senior Client Engagements Manager
  • Contact me!