Mongolia Corporate Income Tax

Corporate income tax rates and base

Mongolia applies a progressive CIT scale to taxable income, with a 1% turnover-based rate for small businesses outside restricted sectors. Resident entities are taxed on worldwide income; non-residents on Mongolian-source income.

• Small-business CIT rate — 1% of revenue for entities with annual revenue up to MNT 300 million (excludes mining, petroleum, alcohol and tobacco) percent (Corporate Income Tax Law of Mongolia)
• CIT on first MNT 6 billion of taxable income — 10% percent (Corporate Income Tax Law of Mongolia)
• CIT on taxable income over MNT 6 billion — MNT 600 million plus 25% of income over MNT 6 billion (Corporate Income Tax Law of Mongolia)
• Tax base — Aggregate annual taxable income; resident entities taxed on worldwide income, non-residents on Mongolian-source income (Corporate Income Tax Law of Mongolia)
• Corporate residence — An entity incorporated under Mongolian law or a foreign entity with its effective place of management in Mongolia (Corporate Income Tax Law of Mongolia)
• Tax on dividends (domestic, gross basis) — 10% percent (Corporate Income Tax Law of Mongolia)
• Tax on sale of immovable property — 2% of gross proceeds percent (Corporate Income Tax Law of Mongolia)
• Reduced rate for listed securities income — 5% on dividend and interest income from shares/debt instruments of qualifying local entities traded on stock markets percent (Corporate Income Tax Law of Mongolia)

Withholding tax and filing deadlines

Domestic-law withholding tax on payments to non-residents is generally 20%, subject to reduction under Mongolia's tax treaties.

• WHT on dividends to non-residents — 20% (domestic law; lower treaty rates may apply) percent (Corporate Income Tax Law of Mongolia)
• WHT on interest to non-residents — 20% (domestic law; lower treaty rates may apply) percent (Corporate Income Tax Law of Mongolia)
• WHT on royalties to non-residents — 20% (domestic law; lower treaty rates may apply) percent (Corporate Income Tax Law of Mongolia)
• WHT on technical/management fees to non-residents — 20% (domestic law; lower treaty rates may apply) percent (Corporate Income Tax Law of Mongolia)
• Reduced WHT on bank bond interest to non-residents — 5% on interest on bonds issued by Mongolian commercial banks percent (Corporate Income Tax Law of Mongolia)
• Annual CIT return deadline — 10 February after the end of the tax year (Corporate Income Tax Law of Mongolia)
• Quarterly CIT return deadline — By the 20th day of the month following the end of each quarter (Corporate Income Tax Law of Mongolia)
• Monthly CIT advance payment — By the 25th of each month per the payment schedule, with year-end settlement by 10 February (Corporate Income Tax Law of Mongolia)