Expat Advice: Financial Issues in Kabul, Afghanistan

What is the name of the city or town that you are reporting on?

Kabul

Which banks do you use? If you have a local account, which bank do you use? How do you like it? Do you also have an account in your home country? Which bank? Do they charge for ATM withdrawals? Do they charge a lot for international wire transfers? How has it been working with them from abroad? Do you use a special international wire transfer service? Do you use an online bank? If so, tell us about them.

Afghanistan International Bank (www.aib.af) has a state-of-the-art online banking platform which allows customers to preform international and domestic wire transfers, review account histories, establish payroll, and download statements.

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What advice would you offer others about banking as an expat in your country? What do you wish you had known about banking when you first arrived?

Some banks have extremely high waiting period before customers are allowed to access deposited/transfered funds.

What sort of challenges or frustrations have you encountered as an investor living overseas? Please describe.

The lack audited financials and appropriate government oversight into the financials of private, NGO and government organizations is particularly challenging.

What advice was particularly helpful to you in managing your finances? What advice would you give? Any other thoughts?

Nearly all receipts are incorrect in Afghanistan - most vendors will ask "how much you wish to make the receipt out for". Therefore, creating strict procurement and quotation rules are critical to keep costs down.

Do you do your own taxes, use a local firm, an expat-oriented firm or does your employer handle this for you (i.e. via an corporate tax firm)?

Led by CEO Sanzar Kakar, Afghanistan Financial Services (www.afs.af), can help you prepare both your Afghan and foreign taxes.

What advice could you offer others about doing your taxes as an expat?

Recommend obtaining regular professional advice as the deadlines and penalties for not paying tax on time are very steep. Rental tax withholding is 10 days after end of month, contractor and employee withholding are due 10 days after end of month, BRT is due quarterly, and income tax is due 3 months after end of fiscal year.