i. Written Rent Contract
A written rent contract should be prepared and signed by both parties (landlord and tenant) and the followings should be considered while preparing a rent contract.
a) Every rented place should have a written rent contract regardless of rent amount.
b) If the rent contract is written by authorized property dealer and their official rent contract template is used, then it is very good. If the tenant or the landlord prepare a written agreement then it is better to include the signature and stamp of the related Wakil Guzar (Local head of the area).
c) The start date and the end date should be clear in the rent contract. It would be better if the contract date format match with your organization tax year. (i.e., Hijri Shamsi or Gregorian calendar)
d) Make sure to always include the gross rent amount in the rent contract. In case one include the net rent amount, it will cause problem while reporting in the annual tax return.
e) The contract should have a clause that the rent withholding tax will be withheld from the gross rent amount in accordance with Afghan tax law.
ii. Rent Contract Cancellation:
In case you leave the rented place due to end of contract or termination of the rent contract, a contract cancellation document should be prepared and signed by both parties.
iii. Rent Payment:
Make sure to prepare proper rent payment documentation that can easily prove the rent amount is paid. A rent payment documentation should at least include the payment amount, the period of which the rent payment is made, the date of payment, the name of the payee, signature of the payee.
In case you want to know more about how rent withholding tax should be calculated and when is the due date for paying rent withholding tax as per the Afghanistan tax law, please click here and go to section 2.2 Rental Withholding Tax.