The Parliament of Mongolia passed the revisions to the General Tax Law (GT Law), the Corporate Income Tax Law (CIT Law), the Value Added Tax Law (VAT Law), and Personal Income Tax Law (PIT Law) on 22 March 2019. The revision of the tax laws became effective starting from 1 January 2020.
In brief, the revision of the tax laws changed the previous rules and introduced several new regulations and concepts to the PIT Law, as follows:
- Rules on determining tax residency.
- Foreign tax deduction.
- Main changes in taxing employee allowances.
- Individual’s income portion in cross-border contracts.