Death and Taxes: The Latter is Manageable
By Sayed Aziz Azimi
Over the past decade, the Ministry of Finance (MOF) of the Government of the Islamic Republic of Afghanistan (GIRoA) has been the beneficiary of extensive and sustained assistance from the many countries that came to help Afghanistan, specifically to establish more advanced systems and institutions.
The Office of Taxation has been completely overhauled, with the new structure closely following the U.S. tax system. While fairly straight-forward, the changes have created some complications for many companies attempting to comply. This is especially true for the foreign entities working in Afghanistan. Along with the cultural and political challenges of doing business in the country, the new tax system has further complicated operating in Afghanistan.
Technologists, Inc. has developed superior capabilities in comprehensive program management, including financial accounting and control systems. Ti professionals, on a contractual basis, can provide a platform for project management for organizations engaged in Afghanistan, including turn-key financial control services, contract administration, funds disbursement, and grants management.
Taking a proactive stance, one of the larger U.S. contractors working in Afghanistan has contracted with Technologists, Inc. to represent them and assure that all contractual and financial reporting requirements are being met and are consistent with MOF’s policies, regulations, and procedures.
As part of Ti’s multi-year task, we will represent the contractor’s interests on all matters related to the MOF. To assure compliance with applicable Afghan laws and administrative orders, we will monitor and document tax-related administrative issues, including:
• Conducting a comprehensive review of all documents, prioritizing issues, along with an action plan to address identified problems, as well as a proactive strategy for addressing all tax-related matters;
• Meeting with the appropriate MOF personnel to resolve any issues;
• Preparing/reviewing quarterly withholding tax forms and related documentation;
• Obtaining/renewing business licenses as necessary, while resolving other matters related to the Contractor’s legal operations in Afghanistan;
• Providing consulting services regarding taxation matters affecting licensing and operations in Afghanistan.