|Paying taxes due 2017 – 2018 |
- Target 100th rank by 2021
- Decrease tax burden to South Asia average (i.e. 40%)
- Decrease time to prepare tax returns (by 25% per year, target 200 hours)
- Decrease time to complete corporate income tax audit (by 25% per year)
- Decrease time to comply with corporate income tax audit (by 25% per year
|Achieved||The ARD department issuing of tax clearance certificates in 21 working days (about 170 working hours) for Initial Tax Audit/initial tax assessment based on the decision of technical committee and tax guide. It depends on the compliance level and obligations of the taxpayers (TAL article 5 & 6), if he/she provide all the information and required evidences based on the check list will speed up the process of tax returns.|
ARD have made some improvement in terms of the process in initial assessment due to execution of fast track filing, establishment of taxpayer service centers, access to taxpayer’s bank account statement through email from all private and semi-governmental banks, access to taxpayer’s exports and imports by using ASYCUDA, access to taxpayer’s contracts through Taxpayer Identification User, access to Afghanistan Central Business Registry (ACBR) in order to have access to the license, address and other information about taxpayers.
|Amend tax regulation to improve ease of doing business including: |
Separate business registration from tax clearance process.
Allow U.S. contractors to file all taxes with the LTO or MTO even if based in provinces. (SLTO will be functional).
MoF must provide a tax clearance letter within 21 days or provide, in writing, list of outstanding items.
|Achieved||The ARD already have practice of separate business registrations for new entity. But for the existent taxpayers the ARD do not able to separate business registration from tax clearance process, otherwise, it will impact and increase the tax arrears further. |
U.S contractors who are already register with MTO and LTO doing tax filling in MTO and LTO respectively and based on the threshold and turnover they do filling in LTO and MTO. As the SLTO has been established by 2019 and preparation for VAT implementation is going on, so therefore, the US contractor can be able to file their taxes with SLTO and MTO in consideration of agreed threshold of tax offices.
ARD tax offices providing tax clearance letter to taxpayers with in 21 working days, still it depends on the compliance rate of taxpayers to fulfill the requirements of initial Tax audit/ assessments. The ARD as well circulate the letters to all tax offices and strict in the SIGTAS revenue system for 21 working days of tax filling and issuing of the Tax Clearance Certificate (TCC) to the taxpayers.