Individual - Deductions

Last reviewed - 22 December 2023

Employment expenses

There are no business deductions allowed for employees, except for a social insurance contribution made by an employee per Social Insurance Law of Mongolia.

Personal deductions

There are no deductions for non-business expenses in Mongolia. Additional tax credits maybe available (different tax credit rules and regulations apply and further consultation should be obtained for each category below) as follows;

  • If income is earned from producing or planting certain agricultural products
  • When donations are made for the purpose of rehabilitation of national cultural heritage.
  • For a citizen of Mongolia purchases an residential apartment at the first time using the mortgage  backed loan
  • For a citizen of Mongolia whose birth, step, adopted child or a guarding child studying in a local or a foreign university, a college or a vocational school
  • For a citizen of Mongolia who is a student and paid the tax from employment income earned while studying for the first time in a university, a college, and a vocational school and paid the tuition payment
  • For a citizen of Mongolia who constructs a residential house or purchases a residential apartment at the first time only for own residency purpose financed by his own taxed income or loan obtained from bank and financial institutions
  • For a taxpayer who purchased a solar, wind, geothermal, and other renewable energy equipment, an equipment to produce coking coal from the coal and producing gas and liquid fuel, a furnace and a low pressure furnace, an insulation material, an electric and gas heater and the purchase is supported by documents

Standard deductions

A general deduction of tax is available ranging from MNT 120,000 to MNT 240,000 annually based on the annual income. Where income is above MNT 36 million annually, no PIT credit is available.

Business deductions

An individual may claim business deductions if registered as an entrepreneur.