Taxpayer Identification Number (TIN) of Afghanistan
Anyone required to pay taxes or customs duties, or anyone with a bank account, must apply for a Taxpayer Identification Number (TIN) as per Article 86 of the Income Tax Law 2009. The purpose of the TIN is twofold: it ensures...
Introduction
Anyone required to pay taxes or customs duties, or anyone with a bank account, must apply for a Taxpayer Identification Number (TIN) (Article 86). The purpose of the TIN is twofold: it ensures proper crediting of payments and contributes to more efficient tax administration. The Income Tax Law 2009 provides for additional taxes and penalties should a person fail to apply for a TIN without ‘reasonable cause’ (Article 105).
What is a Taxpayer Identification Number?
A Taxpayer Identification Number is a unique 10-digit number used to identify a specific taxpayer. Each taxpayer should have only one TIN. A taxpayer is defined as an individual (natural person) or legal entity (legal person) who has an obligation to report income, expenses, or business activity and/or pay tax.
Who Must Obtain a Taxpayer Identification Number?
Article 86 of the Income Tax Law 2009 specifies that the following taxpayers must obtain a TIN: - Individuals, companies, and organizations required to pay taxes or customs duties according to the Income Tax Law 2009 and the Customs Law. - Social, non-profit, and welfare organizations required to withhold taxes from the salaries or wages of their employees. - Persons who have an account or open an account with a bank or other financial institution. - Employees whose incomes are subject to income tax withholding under provisions of the Income Tax Law 2009.
Examples
Example 1: Wahid, an employee of a non-governmental organization, earns AFN 5,000 per month and has no other income. Wahid is not subject to income tax under Article 4 and does not have to obtain a Taxpayer Identification Number. Example 2: Wahid receives a promotion and now earns AFN 15,000 per month, making him subject to tax under Article 4. Wahid must obtain a Taxpayer Identification Number, and the non-governmental organization must also obtain a TIN because it is obliged to withhold tax from its employees' wages. Example 3: Company A, an Afghan corporation, has generated losses every year but is still required to pay Business Receipts Tax (BRT tax in Afghanistan). Hence, Company A must obtain a Taxpayer Identification Number. Example 4: Company B, engaged in construction work in Herat, imported goods subject to customs duty during its first year of operation but had no revenue or profit. Even though Company B does not have to pay income tax or Business Receipts Tax during its first year, it must obtain a Taxpayer Identification Number because it paid customs duties.
How to Obtain a Taxpayer Identification Number
Taxpayer Identification Numbers can be obtained at the Afghanistan Revenue Department in Kabul or at Mustufiat offices in Herat, Jalalabad, Kandahar, Kunduz, and Mazar-e-Sharif. For more information regarding requirements for the TIN or how to apply, or to receive forms, visit the TIN offices mentioned. TIN applications are also available online at [http://www.ard.gov.af](http://www.ard.gov.af). You can also check your TIN number online using the TIN number check feature on the website.
Enforcement Provisions
Failure to comply with the requirements of the Income Tax Law 2009 may result in the Ministry of Finance using administrative powers within the tax law to ensure compliance. These provisions are contained in Chapters 14 and 16 of the Income Tax Law 2009 and include fines and penalties. A person required to have a TIN under Article 86 who fails to apply without ‘reasonable cause’ is subject to additional income tax of AFN 5,000 if a natural person or AFN 20,000 if a legal person.
Examples of Reasonable Cause
Example 1: Asiyeh lives in a small village in Badakhshan province and is employed by an international non-governmental organization as a mid-wife. Her employer withholds a portion of her wages for the tax year 1389. Asiyeh is required to have a TIN but has failed to obtain one due to illiteracy and lack of information from her employer. She would need to travel for days to find the office with the necessary forms. When informed by the Afghanistan Revenue Department, Asiyeh agrees to sign the forms and obtain her TIN. Asiyeh has ‘reasonable cause’ for failing to obtain a TIN and will not be subject to additional tax. Example 2: Sarika lives in Kabul province and is employed by an international non-governmental organization as a mid-wife. Her employer withholds tax from her wages during the tax year 1389. Despite having access to the Internet and being able to travel to the Afghanistan Revenue Department offices, Sarika does not obtain a TIN due to the cost of using the Internet or traveling by taxi. Sarika does not have ‘reasonable cause’ for not obtaining a TIN and is subject to the AFN 5,000 additional tax.
Note
Afghanistan Revenue Department tax offices and Mustufiats provide forms, guides, and instructions to taxpayers free of charge, available both as printed and downloadable versions from the new website [http://www.ard.gov.af](http://www.ard.gov.af). The website also provides locations, contact numbers, and hours of operation for tax offices and Mustufiats. Taxpayers can download other useful information including various public announcements and rulings, questions & answers regarding wage withholding tax, the Income Tax Law 2009, and an Income Tax Manual. The manual discusses each article of the law, along with relevant regulations, often with helpful examples. The TIN Form Afghanistan is also available on the website for easy access. For more detailed information, you can refer to the Taxpayer Identification Number (TIN) of Afghanistan sample, or download the Taxpayer Identification Number (TIN) of Afghanistan PDF from the official website.