Failure to file a tax return within the due date without reasonable cause attracts additional income tax at AFN 100 per day of such delay. Delay in payment of tax attracts a penalty at the rate of 0.1% per day of the tax so delayed. In case no tax is paid, an additional income tax of 10% can also be imposed, in addition to the penalty of 0.1%.
If the tax evasion is determined, it attracts the following tax:
- In the first instance, additional tax equal to double the evaded tax
- In the second instance, additional tax equal double the evaded tax and termination of the business activity by order of the court
Failure to withhold tax from payments without reasonable cause, attracts additional tax of 10% of the tax liability and non-deductibility of the expense in the computation of taxable income.
In response to the COVID-19 pandemic, no late filing or late payment penalties will be imposed in Afghanistan provided the corporate income tax returns are filed and tax payments are made by the extended deadline of 20 May 2020.