Mongolia - Civil Law
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Mongolia taxes

If you want to do business in Mongolia, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC which is the most common company structure in Mongolia.

Mongolia imposes a tax on resident entities worldwide income. The prevailing percentage for income earned abroad, from our research, and this is not personal tax advice, is 25%. The country doesn't have known exemptions to transfer in offshore income accrured abroad. Resident companies taxable income up to MNT 3b is taxed at 10%, the excess is taxed at 25%. This ranks Mongolia as 103rd when compared to CIT globally.

The valued added tax rate in MN is 10.00%, which ranks Mongolia as 47th when compared to value added tax rate worldwide. In terms of other taxation, an employer will contribute 13% to the equivalent of a social security fund and an employee will contribute 10%. The average time to comply with a country's labor tax requirements is 48hours. Contributing to this is the number of yearly labor tax payments, which is 12 in MN.

Thin capitalization mandates are officially enacted. Thin capitalisation refers to any type of requirements on a business and the debt-to-asset ratios. Dividends paid by a domestic company to other domestic company is subject to withholding tax at 10% rate. Dividends received may be also included in corporate income tax base. Dividends are payments of a company's earnings, determined by the board, to a class of its shareholders. Dividends can be one of the following cash payments, shares of stock, or other property. Capital Gains are subject to corporate income tax standard rate, except sales of immovable property, subject to tax of 2% on gross sales. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 20%. Which means that the tax authorities expects companies to pay tax on 20% of interests remitted abroad. The dividends withholding tax rate is 20%. This should be interpreted that usually the taxman expects relevant legal entities to automatically withhold 20% of payments abroad on dividends. The royalties withholding tax rate is 20%. This means that the taxman expects LLC's to withhold 20% of royalties paid to non-residents. Withholding tax rates may be reduced under a tax treaty.
There is no known tax on wealth in Mongolia. There are no known inheritance and transfer taxes. There is a real property tax. There are certain tax reductions for certain economic activities, foreign investment incentives and free trade zones with certain tax reliefs.

The above is not tax or legal advice for your company circumstances. We are able to point you to a lawyer in Mongolia who can give you the proper advice and help you need. Press incorporate now if you are in a hurry or click the free consultation button above.

It takes approximately 46 hours to file and prepare documents for a Mongolia Civil Law.
The corporate tax is approximately 25% which is 103 in the world.

Owners of a company in Mongolia are not allowed to carry back a loss and may be allowed to carry forward a loss for 2 years.

The vat rate in Mongolia is 10% which ranks 46 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
24Tax treaties
25%Offshore Tax
25%Corp rate
-Loss carryback years
46Corporate time
10%VAT rate
25%Capital gains
NoAEOI planned

Read this to learn about incorporating a company in

We can help you form a company in Mongolia. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Mongolia, which is required by law.

Mongolia Tax Treaties

CountryTypeDate signed
South Korea
DTC 1992-04-17
DTC 1995-04-05
DTC 1997-04-18
DTC 1999-09-20
DTC 2003-07-03
DTC 2003-09-11
United Arab Emirates
DTC 2001-02-21
DTC 1995-07-27
DTC 2002-05-27
DTC 1998-06-05
DTC 1998-03-12
United Kingdom
DTC 1996-04-23
DTC 1995-09-12
Czech Republic
DTC 1997-01-27
DTC 1994-08-22
DTC 1994-02-22
DTC 2002-07-01
DTC 1995-09-26
DTC 2002-10-10
DTC 2002-03-08
DTC 1996-07-02
DTC 1991-08-26
DTC 1994-09-13
DTC 1996-04-18

Country Info

National Flag of
Монгол улс (mon)
Area Code
Ulan Bator
Eastern Asia
Native Languages