Issue 10

Presidential Decree 38

25 Jan 2015

The Afghan Government has instituted a transition period from 1 Jan 2015 to 1 Jun 2015 allowing for a phased implementation of new processes agreed under the Bilateral Security Agreement with the U.S. and the Status of Forces Agreement with NATO. This advisory summarizes the implications of this Presidential Decree.

Issue 11

Afghanistan Compliance Advisory

10 March 2015

In continuation of our series, this issue discusses licensing, visas, weapons permits and taxation for contractors and subcontractors operating under the U.S.-Afghanistan Bilateral Security Agreement (BSA) or NATO Status of Forces Agreement (SOFA), including a transition period announced in Government of the Islamic Republic of Afghanistan (GIROA) Presidential Decree 38.

Issue 12

Afghanistan Compliance Advisory

10 May 2015

In continuation of our series, this issue discusses licensing, visas inside/outside Afghanistan and taxation. This information is only applicable to DoD or NATO non-Afghan prime or subcontractors in Afghanistan.

Issue 13

Afghanistan Compliance Advisory

23 June 2015

This advisory is generally applicable to all entities operating in Afghanistan including prime/sub, corporate/NGO, Afghan/non-Afghan. There are special provisions for military contractors which are labeled as such.

Issue 14

Afghanistan Compliance Advisory

22 September 2015

There have been a number of changes in Afghan regulations over the past month. The BSA (for DOD) and SOFA (for NATO) entered into force on 1 Jan 2015 requiring all military contractors to abide by Afghan law, including with respect to business licensing, visas, weapons permits and ...

Issue 15

Afghanistan Compliance Advisory

29 December 2015

Visa renewals for military contractors currently inside Afghanistan have not started yet. However, all Afghan Embassies and Consulates outside Afghanistan (listed here: http://mfa.gov.af/en/page/4183/3884) should be issuing multiple entry visas. The new BSA visa process is as follows, which bears similarities to the traditional, non-BSA visa process

Issue 16

Annual Income Tax Returns (AITR) for Afghan fiscal year 1394 ended 20 Dec 2015 are due one month from today - by 21 March 2016. Tax exemption confirmations from the Ministry of Finance for all tax exempt contracts should be applied for as early as possible because they should be included with your AITR. More information -- and the new BSA/SOFA Contractor

Issue 17

The Business Receipts Tax (BRT) rate was increased from 2% to 4% on the cost price of all imported goods, in addition to customs duty. This BRT is treated as an advance payment for quarterly business receipts tax payable (Article 64). The standard quarterly BRT rate was increased from 2% to 4% on all gross income received (before any deductions) effective 1 Sunbula 1394 (23 Aug 2015). The 5% BRT rate (for hotels or restaurants earning more than 750,000 Afghani), and the 10% BRT rate (for telecom, airlines and superior hotels/restaurants) remain the same.

Issue 18

New FAQ for military contractors. Resolute Support has issued a new version of its Contracting in Afghanistan BSA/SOFA Guidelines, available here. More information about licensing, visas, weapons permits and taxes is available here, with supporting documents here.

Issue 19

This advisory is an update on compliance matters in Afghanistan. Changes to the business licensing process. The Afghanistan Investment Support Agency (AISA) has merged into the Central Business Registry (CBR) of the Ministry of Commerce and Industries (MOCI). AISA previously issued investment licenses while CBR issued business registration certificates. So far the following changes have resulted: The hard copy license has been redesigned and is now called a business license, including both AISA and CBR numbers.

Issue 2

Important Afghanistan compliance information

15 February 2014

The 1392 fiscal year ended 20 December 2013 with income tax returns due by 20 March 2014. If your assigned Financial Manager from AHG has not yet provided you with the list of items needed to prepare your return, please email Ishfaq Shah at ishfaq.shah@ahg.af.

Issue 20

Potential legacy taxes resolution. Today, the U.S. Embassy Kabul and the Resolute Support mission briefed U.S. contractors on a recommendation, to be submitted by 28 Nov 2016 by the Government of Afghanistan’s Ministry of Finance (MOF) for subsequent Afghan Cabinet approval, to forgive the collection of certain taxes that may (or may not) be due by DOD and NATO contractors and subcontractors for work they performed in Afghanistan prior to 1 January 2015 (called “legacy” tax issues).

Issue 21

As discussed in previous advisories, the Bilateral Security Agreement (BSA) applies to U.S. Department of Defense and North Atlantic Treaty Organisation (DOD/NATO) contracts awarded after 1 Jan 2015 (Post-BSA). 

Issue 22

he Bilateral Security Agreement (BSA) went into effect 1 Jan 2015, requiring business licenses and visas for all contractors working for the U.S. Department of Defense or North Atlantic Treaty Organisation (DOD/NATO). Consequently, many DOD/NATO contractors first registered in Afghanistan in 2015.

Issue 23

The Ministry of Finance (MOF), led by His Excellency Minister Eklil Ahmad Hakimi, has successfully been implementing a long list of reforms in many areas, but particularly relevant to the public are those in the Afghanistan Revenue Department (ARD).

Issue 24

The Ministry of Commerce and Industries (MOCI), led by His Excellency Minister Humayoon Rasaw, has been successfully implementing a long list of reforms in many areas, but particularly relevant are policies to facilitate investment. We take this opportunity to highlight some of these below. 

Issue 25

The Senior Economic Advisor to the President, His Excellency Ajmal Ahmady has been successfully implementing a long list of reforms in many areas to facilitate investment. We took the opportunity to highlight some of them below.

Issue 26

His Excellency Mr. Eklil Ahmad Hakimi, the Minister of Finance of the Islamic Republic of Afghanistan, has approved a wonderful new streamlined procedure for the Afghanistan Revenue Department (ARD), Tax Exemptions and Rulings Directorate to be able to review Tax Exemption Confirmation (TEC) Applications, without the need for a complete or redacted copy of the contract for both prime and subcontractors performing under the U.S. Department of Defense (DOD) Bilateral Security Agreement (BSA) or NATO Status of Forces Agreement (SOFA).

Issue 27

In order to gain a sense of how pervasive Afghan tax issues are, SIGAR would appreciate your organization's response to the short survey. Without your input, it will be much more difficult to quantify the taxes or fees being paid, and more challenging to find relief for firms facing tax assessments.  

Issue 3

Updates on Afghanistan tax compliance

March 30th, 2014

Two of the four complex attacks this week were in the immediate vicinity of AHG facilities in Darulaman and Karte Seh. Given the ongoing security crisis in Afghanistan, our Kabul headquarters will be closed until 7 April 2014. We will still try to respond via email, and appreciate your patience during this difficult time.

Issue 5

Afghanistan Compliance Advisory

May 30th, 2014

ividend Withholding Tax Ruling on Exempt Contracts. On 18 May 2014, the Ministry of Finance (MOF) Objections and Review Department issued a final ruling that dividend withholding tax does not apply to contracts holding tax exemption confirmations.

Issue 6

Afghanistan Compliance Advisory

July 2nd, 2014

Half way through 2014 the political, economic and business climate in Afghanistan grows increasingly challenging. We are pleased to provide this analysis of risks that could impact your business operations in Afghanistan.

Issue 7

BSA/SOFA Ratification

18 Oct 2014

On 30 September 2014, on its first day after inauguration, the new Afghan administration signed the Bilateral Security Agreement (BSA) with the United States and the Status of Forces Agreement (SOFA) with NATO. This advisory summarizes our understand of the implications for contractors operating in Afghanistan.

Issue 8

New Visa Policy

29 Nov 2014

All contractor and subcontractor employees working in Afghanistan, including those limited to military bases, will be required to hold Afghan visas. On 12 Nov 2014, the Ministry of Foreign Affairs issued a new policy to all Counselor missions worldwide regarding visas.

Issue 9

BSA/SOFA Developments

20 Dec 2014

This issue highlights the latest developments regarding the implications of the Bilateral Security Agreement with the U.S. and the Status of Forces Agreement with NATO, including work visas, business license registration, weapons permits and payroll tax withholding.