Financial & Taxation

Financial & Taxation Services

Tax compliance in Afghanistan is the most challenging and complicated process, even for companies with very simple business operations. We have the experience from the past that it is imperative to be pro-active and to get started early. Now, more than ever, it’s important to make sure you get the expert help you need to get it right the first time in order to avoid costly penalties and long delays.  At Blue Presto, our tax specialists are supported and supervised by experienced Accountants who are ACCA, CIMA, CPA qualified and have great experience in Afghan income tax law and practicing the process with different Afghan GOV offices.

The new Tax Administration Law is dramatically and politically changing and therefore the new penalties have been added for failure to make all required payments in a timely manner. There are new rules concerning the filing and payment of Business Receipts Tax and new procedures for the processing of tax forms and clearance letters. In addition, there remains a high degree of misunderstanding about tax exemptions. There is no automatic tax exemption, regardless of the nature of your work in Afghanistan, the source of your funding, or the entity you’re contracted with. If you have not applied for and received a tax exemption certificate from the Revenue Department of Afghanistan (ARD), you are obligated to pay taxes. Even if you have received an exemption letter, you are not exempt from all taxes, and you are still obligated to file an annual tax return and other forms (BRT, Rental, vendor and wages).

Blue Presto has successfully represented clients in both large and small tax matters. We offer complete tax and financial services at competitive rates, including:

  • Annual Tax Return (annually)
  • Business Receipt Tax (quarterly)
  • Tax Withholding Compliance (monthly)
  • Tax Exemption Applications (Tax-confirmation)
  • Ministry of Finance Audit (annually)
  • Audit Appeal (annually)
  • Payroll & Accounting Services (monthly)
  • General Consulting Services

Annual Tax Return

We provide the Chart of Accounts used by the Ministry of Finance and recommend proper implementation for future accounting purposes

We prepare the draft annual tax filing based on the information received/approved by our clients, including calculations of non-exempt revenue and deductible expenses (GNA, OH)

We provide comprehensive filing, deposit and administrative support services, including penalties for late compliance if applicable

We do a financial analysis for all line item expenses/ income in comparison to supporting documents reported to the tax office (wages withholding, contractor withholding, rent withholding and BRT) for both local and international employees and vendors, which will help in securing the initial tax clearance letter in the minimum amount of time

  • No Activity Return (Businesses)
  • Complete Return (Businesses)
  • Simplified Return (Businesses)
  • Simplified Return (Individuals)
  • Standard Return (Non-profits)

Samples are as under;

No Activity Return (Businesses) (Dari)
No Activity Return (businesses) (Pashto)
Complete Return (businesses) (Dari & English)
Complete Return (businesses)(Pashto)
Simplified Return (businesses) (Dari & English)
Simplified Return (businesses) (Pashto)
Simplified Return (individuals)(Dari & English)
Simplified Return (individuals) (Pashto)
Standard Return (non-profits) (Dari & English)

Business Receipts Tax (BRT)

With respect to nontax-exempt projects, we assist in the preparation, submission and payment of business Receipts Tax, and provide advice in seeking relief from any late filing and payment penalties, if applicable

For clients with tax exemptions, we assist with the necessary filings for your exempt contracts or projects, We will recommend process improvements for timely quarterly submissions to avoid late filing and payment penalties

Samples are as under;
Business Receipts Tax (Dari & English)
Business Receipts Tax (Pashto)

Tax Withholding Compliance

We review your financial books at the end of each month and do the proper/correct tax calculation to verify rental, employee and contractor withholding and report it to MoF on time.

We review your supporting documents at the end of each month and do a thorough review of the withholding, including contracts and payment receipts to advise on compliance and recommend process improvements

We will prepare withholding tax forms for submission and deposit to the Ministry of Finance on a timely manner to avoid paying unnecessary late penalties.

Samples are as under;

Rental Tax Withholding (Dari & English)
Rental Tax Withholding (Pashto)
Employee Tax Withholding (Dari & English)
Employee Tax Withholding (Pashto)
Contractor Tax Withholding (Dari & English)
Interest, Dividend & Royalties Tax Withholding (Dari & English)
Interest, Dividend & Royalties Tax Withholding (Pashto)

Tax Exemption Applications

Tax exemption confirmation are not automatic. Despite what you may have been told, your project or contract is not tax exempt unless you have an exemption certificate from the Ministry of Finance. We can advise you on whether you may be entitled to certain objections, and process your application through the Exemptions Department

We provide our opinion on which contracts or projects are entitled to exemptions under the Bilateral Security Agreement or other agreements

We will advise on any additional documentation that is required for purposes of seeking tax exemptions

Ministry of Finance Audits

It is standard procedure for the Ministry of Finance to audit international organizations working in Afghanistan. We make sure that the tax authorities respect your rights, and our firm will represent you before all government offices during the course of the auditing process

We collect any official documents (questionnaires) issued by the Audit Department and share it with you, along with their English translations for clear understanding

We thoroughly review the questionnaires and help you respond to them, including the collection of documents required by the questionnaires

To avoid any discrepancy, we make sure to double check any information that is provided to the Audit Department

We archive soft and hard copies of all important documents and correspondence with the Audit Department

We process any questionnaires that are referred to government ministries

We provide weekly and monthly progress reports on all audit issues

Audit Appeals

We review any assessment you receive from the tax office, and advise you of any error, miscalculation, or misapplication of law. If a dispute arises, we represent you on your behalf at the tax office, defend against enforcement actions, file and present an appeal within the Ministry of Finance, and file an action in Afghan court (if required).

Payroll & Accounting Services

We provide monthly payroll services, assist in maintaining an appropriate accounting system, open and close bank accounts, and help you establish an efficient payroll system

We provide finance outsourcing and human resources outsourcing

General Consulting Services

We can provide general consulting services via email, telephone or in person regarding tax compliance and other corporate matters

We can help you to improve your organization’s performance, and conduct your core business more efficiently

We provide free consultation, in person or on the phone, to discuss
possible  best solutions to the challenges you encounter, whether in
Financial, Taxation, Business Setup, Closures or Outsourcing.