How to have acceptable expense document or bill for allowable deduction in annual tax return?

1. Written Agreement:

Expenses that need contract such as rent, internet, vehicle,… should have clear written agreement in place.

2. Valid Receipt:

All purchases must be substantiated by a valid receipt. Every receipt must contain the following to be considered valid:

1. Date
2. Name of business
3. Address of business
4. Phone number of business
5. Must have your organization’s name written in the customer line
6. Include a complete description of the goods/services paid for (including the quantity)
7. List the total amount paid
8. Must be stamped by the vendor
9. Must contain the vendor’s signature

3. Payment Proof:

Proof of payment should be strong enough that can easily be understandable. One of the followings options should be applied:

1. Payment through bank will be easily acceptable (if possible)
2. Cash payment should have payment voucher with signature of payer, receiver and approver.

4. Withholding Tax Return:

Every expense which needs withholding tax, will not be considered allowable deduction unless you show the contractor tax withholding form.

In case you want to know more about how contractor withholding tax should be calculated and when is the due date for paying contractor withholding tax as per the Afghanistan tax law, please click here and go to section 2.3 Contractor Withholding Tax.