INCOME TAX RATE ON LAW OF MONGOLIA CORPORATE INCOME TAX
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.
Source: Law of Mongolia Corporate Income tax