Mongolia
Individual - Significant developments
Last reviewed - 31 January 2023Updates effective from 01 January 2023
Personal Income tax rates:
To align with the international tax practice and to reduce income inequality, the Parliament has approved introduction of a progressive PIT rate on salaries, wages, equivalent income and indirect income. According to the Ministry of Finance (“MOF”), the aforementioned reform will impact only 0.1 percent of taxpayers. These newly introduced progressive rates are only applicable to a resident taxpayers of Mongolia.
Minimum wage:
In accordance with Resolution No.10 dated May 4, 2022 issued by National Tripartite Committee on Labor and Social Consensus, the minimum wage has been changed to MNT 3,273.80 per hour or MNT 550,000 per month.
Social Insurance Employee cap:
The monthly cap of the employee’s social insurance contribution has changed to MNT 632,500