Category: Finance and Tax

• Registration of taxpayers, making amendments and removal.
• An entity covered by Article 6 of the Corporate Income Tax Law shall submit the following documents 10 days prior to the commencement of operations and submit an application for registration as a taxpayer to the tax administration electronically or on paper:
• An application form for taxpayer registration
• Resolution of a foreign business entity establishing a representative office in Mongolia, stating the operational areas, duration, name of management team and number of employees;
• Tax-resident certificate
• Documents proving the registration of the parent company as a legal entity /copy /, copy of company charter;
• A copy of the agreement concluded with a Mongolian entity proving the income source is originated from Mongolia
• Evidence of address and location of the representative office
• Resolution and power of attorney appointing the head of the representative office;
• Copies of the application form and documents of the representative office /if the management is a Mongolian citizen, a copy of the ID card is required, if the management if foreign citizen,  a temporary ID card registered with the Foreign Citizenship Office and a copy of the passport is required/;
• Beginning financial statement of Representative office

1. Filling of the taxpayer registration form (Form TB-01 for corporates and TB-02 for other organizations)
2. Copy of certificate of registration
3. Charter of a legal entity
4. Founder’s application form, copies of ID card
5. Bank account statement of the legal entity
6. Management application form and copy of ID card
7. Renting agreement (if the office is rent basis)

20.1. In accordance with Articles 18.2, 18.3, 18.4 and 18.5 of this Law, if the taxable annual income is between MNT 0-6 billion, the rate of 10 percent shall be imposed whereas if the taxable income is above MNT 6 billion, the tax would be calculated as MNT 600 milliont plus 25 percent on any exceeding amount.

20.2. The following taxable income of a taxpayer shall be taxed at the following percentages:

20.2.1. In the income specified in 18.6.1, 18.6.2, 18.6.3, 18.6.7 and 18.7 of this law

• fee income 10%
• dividend income 10%
• interest income 10%
• 10 percent;
• proceeds from the sale and transfer of immovable property at 2 percent;
•  real estate tax 0.6-1%

20.2.3. In the income specified in 18.6.5 of this law – 40 percent is imposed on winnings from paid games, and lotteries;

20.2.4. In the income specified in Articles 18.6.6 and 18.6.8 of this Law

– 20 percent on the profit transferred from the representative office to its parent in the given tax year;

– 5 percent on the interest income of Mongolian taxpayer issued foreign and domestic securities being traded in the primary and secondary markets.

20.2.7. Notwithstanding the provisions of Article 20.1 of this Law, earned taxable income of up to MNT 300 million per year specified in Articles 18.2, 18.3, 18.4 and 18.5 of this Law.  1 percent on the taxable income of a taxpayer operating in sectors other than as specified in clauses of 22.1.1, 22.1.2, 22.1.3, and 5 percent of the income from the sale of intellectual property rights.

– Royalties 2.5-5% on mineral resource reserve use

20.3.  In the case of a stabilization certificate holder, a tax shall be imposed at a stabilized rate and rate during the validity period of the stabilization certificate.