Mongolia

Corporate - Withholding taxes

Last reviewed - 04 August 2020

Dividends, interest, and royalties paid, and payments made for goods sold and work/services provided (directly or electronically), to non-residents are subject to WHT at a 20% rate. Interest provided to non-residents on bonds issued by Mongolian commercial banks and listed on the domestic or foreign stock exchange are subject to WHT at 10%.

Dividends, interest, and royalties paid to resident companies and individuals are all subject to WHT at 10%.

A special 5% rate applies on interest income of an investor who purchased debt instruments of a local entity (not holding mineral resources, oil exploration and mining special licenses), traded in local and international stock markets.

Current DTTs

Recipient Beneficial WHT rates (%)
Dividends Interest Royalties Technical fees
Non-treaty 20 20 20 20
Treaty:        
Austria 5/10 (1) 10 5/10 (11) N/A
Belarus, Republic of 10 10 10 N/A
Belgium 5/15 (2) 10 5 N/A
Bulgaria 10 10 10 N/A
Canada 5/15 (7) 10 5/10 (12) 5
China 5 10 10 N/A
Czech Republic 10 10 10 N/A
France 5/15 (7) 10 5 N/A
Germany 5/10 (1, 4) 10 10 N/A
Hungary 5/15 (9) 10 5 N/A
India 15 15 15 15
Indonesia 10 10 10 N/A
Italy 5 0/10(6) 5 N/A
Kazakhstan 10 10 10 N/A
Korea, Democratic People's Republic of 5 5 10 N/A
Korea, Republic of 5 5 10 N/A
Kyrgyzstan 10 10 10 N/A
Malaysia 10 10 10 10
Poland 10 10 5 N/A
Russia 10 10 In accordance with domestic legislation N/A
Singapore 0/5/10 (6, 9) 5/10 (10) 5 N/A
Switzerland 5/15 (5) 10 5 N/A
Turkey 10 10 10 N/A
Ukraine 10 10 10 N/A
United Kingdom 5/15 (3) 7/10 (8) 5 N/A
Vietnam 10 10 10 10

Notes

  1. 5% if the recipient is a company (excluding partnerships) and directly owns at least 10% of the capital of the company paying dividends.
  2. 5% if the beneficial owner is a company (excluding partnerships) and directly or indirectly holds at least 10% of the capital of the company paying dividends.
  3. 5% if the beneficial owner is a company that directly or indirectly controls at least 10% of the voting power in the company paying dividends.
  4. 5% if the beneficial owner is a company (excluding partnerships) and directly owns at least 10% of the company.
  5. 5% if the beneficial owner is a company (excluding partnerships) and directly owns at least 25% of the capital of the company paying dividends.
  6. No tax if dividends paid to the government/certain public bodies.
  7. 5% if the beneficial owner is a company and directly or indirectly holds at least 10% of the capital of the company paying dividends.
  8. 7% if interest is paid to a bank that is the beneficial owner of the interest and carrying on a bona fide banking business.
  9. 5% if the beneficial owner is a company and directly owns at least 25% of the capital of the company paying dividends.
  10. 5% if interest is received by a bank or a similar financial institution.
  11. 5% if the beneficial owner of the royalties in the meaning of any patent, trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial, or scientific experience; 10% in all other cases.
  12. 5% if the beneficial owner of the royalties in the meaning of copyright royalties and other payments for production or reproduction of any literary, dramatic, and other work, royalties for the use of, or the right to use, computer software or any patent, or for information concerning industrial, commercial, or scientific experience; 10% in all other cases.