Training on Afghanistan’s Tax Law Awareness conducted at Avicenna University

Banking and Financial Management Department of Management and Economic Faculty of Avicenna University conducted an awareness raising program on Tax Law with cooperation of Sahiby Finance Company for students, staff and other participants on Thursday December 11, 2019 at Avicenna University. The program started with the citation of holy Qoran and National Anthem and opening remarks by Mr. Mohammad Amir Noori, Vice Chancellor of Avicenna University for Admin and Finance.

Mr. Noori appreciated the company for raising citizens’ awareness on tax law which will result in promotion of the country. He added that tax is the most sustainable, effective and efficient source of revenues for governments. Natural resources, mines and other resources are also providing resources for governments, but none of them are trusted as much as tax, as it is flowing sustainably. He pointed out that export and business would also be source of income but they are not constant and Afghanistan is vulnerable because of its geopolitical position.

Arash Sahiby, CEO of the company gratefully expressed that the company is trying its best to provide awareness raising programs for government and private sector and also to promote internships among students and motivated people.

Mr. Sahiby Added that for resolving tax issues of the private sector, we deal with three directorates of the ministry of finance; including large tax payers where the net revenues are more than 150 Million Afghanis and 450 companies are registered as large tax payers while it is expected that this number reach to 1100 companies in the next year. Another directorate is mid-level tax payer dealing with construction companies, logistics and NGOs where 18000 tax payers registered. The third directorate is small tax payers which are dealing with the export and import as well as citizens houses where 24000 tax payers are registered.

Mr. Sahiby pointed out the types of taxes; including revenues tax, quarterly tax, salary tax, contract tax and property rent tax. He added that there are calander year and financial year and tax issues are related to financial year starting in December.

Mr. Sahiby continued that tax payers are identifying their gross revenues, deducting their expenses and the due amount is subject to tax. According to him, not being aware of the details of tax law is not an excuse and tax payers can obtain tax statement from the website of the ministry of finance. Based on his views, employees need to pay tax from their salaries; one to 5000 AFN has tax exemption, 5000-12500 is exposed to 2% tax and 12500 to 100000 are exposed to 10% tax and more than 100000 are exposed to 20% tax.

Mr. Sahiby mentioned that with gaining a Tax Identity Number (TIN) from the Ministry of Finance, you will help taxpaying transparency from one hand and TIN represent working experiences and you will know the amount of tax you paid from other hand.

Mr. Sahiby pointed out that according to article 64 of tax law, we need to pay revenue and salary tax quarterly but contract tax are payable annually. He also added that license holders are exposed to 2% and individual contracts are exposed to 7% tax.

At the end, certificates are distributed to the participants.