Corporate - Significant developments

Last reviewed - 31 January 2023

There have been multiple additions and amendments to the tax legislation promulgated by Mongolian Parliament effective from 01 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 law (CIT) (See Tax credits and incentives for details)

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
  • invest in Software development

 Real estate income tax (See Other taxes for details)

  • Immovable property tax (IPT) rate has been increased to 0.6%-2.0% from 0.6%-1.0%
  • Amendments and additions to tax exemptions have been introduced

 Revision of the Asset Valuation Act

The revision of the Law on Asset Valuation was approved by the Parliament on June 17th, 2022, and it is effective from January 1, 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.

Amendments and changes made to the Law on Minerals in reference to;

  • Royalties for mineral resources;
  • Termination of Special licence and
  • Delivering the information to the tax office