Tax laws Mongolia
Mongolia's tax system encompasses various taxes, including personal and corporate income taxes, value-added tax (VAT), and others. The General Department of Taxation under the Ministry of Finance administers these taxes.
1. Personal Income Tax (PIT):
Residents:
Progressive Rates: Mongolian residents are subject to progressive tax rates on annual taxable income from salaries, wages, and similar employment income:
| Annual Taxable Income (MNT) | Tax Rate (%) |
|---|---|
| Up to 120,000,000 | 10 |
| 120,000,001 – 180,000,000 | 15 |
| Over 180,000,000 | 20 |
Non-Residents:
Flat Rate: Non-resident taxpayers are subject to a flat tax rate of 20% on income earned in or sourced from Mongolia.
Specific Incomes: Certain incomes, such as those from the sale of immovable property (taxed at 2%) and gambling, quizzes, and lotteries (taxed at 40%), are subject to specific taxes.
2. Corporate Income Tax (CIT):
Resident Entities:
Worldwide Income: Mongolian resident entities are taxed on their worldwide income.
Progressive Rates: CIT is levied using progressive rates:
| Annual Taxable Income (MNT) | Tax Rate (%) |
|---|---|
| Up to 120,000,000 | 10 |
| 120,000,001 – 180,000,000 | 15 |
| Over 180,000,000 | 20 |
Non-Resident Entities:
- Source-Based Taxation: Non-resident entities conducting business in Mongolia are taxable on income earned within the country and from Mongolian sources.
3. Value-Added Tax (VAT):
- Standard Rate: Mongolia imposes a VAT rate of 10% on the sale of goods and services.
4. Windfall Tax:
Implementation: From 2006 to 2009, Mongolia imposed a windfall tax of 68% on profits from unsmelted copper and gold concentrates.
Repeal: The tax was repealed in 2009 to encourage foreign investment in the mining sector. citeturn0search10
5. Recent Developments:
- Mining Sector: Mongolia continues to develop its mining sector, with significant agreements such as the $1.6 billion deal with French energy company Orano to develop the Zuuvch-Ovoo uranium mine.
Note: Tax laws and regulations are subject to change. For the most current information, consult the General Department of Taxation or seek professional tax advice.
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