Taxpayers in Mongolia are separated into two separate classifications – resident and non-resident, with different rates applying to various revenue streams depending on whether the entity is s tax resident in Mongolia. A resident taxpayer is an entity that resides in a Mongolia on a permanent basis and comprises of entities established under Mongolian law and foreign entities that have their headquarters in Mongolia A non-resident taxpayer is an entity that undertakes business activities in Mongolia through a permanent establishment or foreign entities that earn income sourced in Mongolia. Taxpayers that resides in Mongolia on a basis – tax rates for common income sources: CORPORATE INCOME TAX Type of income Tax rate 1 Annual taxable income between MNT 0 – 3 billion 10% Annual taxable income greater than MNT 3 billion MNT 300 million plus 25% of income exceeding MNT 3 billion 2 Income from interest 10% 3 Income from dividends 10% 4 Income from royalties 10% 5 Income from the sale of rights 30% 6 Income from the sale of immovable property 2% Taxpayers that does not reside in Mongolia on a basis – tax rates for common income sources: CORPORATE INCOME TAX Type of income Tax rate 1 Income from dividends 20% 2 Income from interest and payment for issuing a guarantee 20% 3 Income from royalties 20% 4 Income from leases, including tangible/intangible assets, financial lease interest and payment of administrative expenses 20% 5 Income from goods sold, work performed and services provided in Mongolia 20% 6 Income earned from service provided, work performed directly or electronically sourced from Mongolia 20% 7 Permanent establishment profit repatriation (withholding tax) 20% 8 Income from interest of bonds that were issued by commercial banks of Mongolia 10% Further, non-residents are obliged to register for tax purposes within 30 days commencing business in Mongolia if the permanent establishment is created unless otherwise provided in relevant double taxation agreement.