There have been multiple additions and amendments to the tax legislation promulgated by Mongolian Parliament effective from 1 January 2023 as follows:
General Law on Taxation (GLT)
There have been amendments related to the tax registration and information database whereby a more detailed and regulated registering and monitoring process will be followed.
Corporate Income Tax (CIT) Law
Tax incentives have been introduced to encourage businesses to:
- move operations outside the city limits
- increase employment
- promote public transportation
- boost the financial market
- invest in heating and electric power production projects
- invest in start-up companies for innovative products, works, and services, and
- invest in software development.
See the Tax credits and incentives section for details.
Real estate income tax
- The immovable property tax (IPT) rate has been increased from 0.6% through 1.0% to 0.6% through 2.0%.
- Amendments and additions to tax exemptions have been introduced.
See the Other taxes section for details.
Revision of the Asset Valuation Act
The revision of the Law on Asset Valuation was approved by the Parliament on 17 June 2022, and it is effective from 1 January 2023. The revised Law introduces the concept for asset valuation for tax purposes. For the same purpose, the Ministry of Finance is waiting to release the procedure and model methodology to evaluate the assets for tax purposes.
Law on Minerals
Amendment and changes were made to the Law on Minerals regarding the following:
- Royalties for mineral resources.
- Termination of special licence.
- Delivering the information to the tax office.