Corporate Tax Definition
- Corporate Tax is a tax levied on corporations' profits. Because corporations are legal entities separate from their owners, they may be taxed as if they were persons. A corporate tax, then, is the equivalent of the income tax for natural persons.
- The State Ikh Khural (the Parliament) approved the Law on Accounting on 13 December 2001. The law was amended in 2006
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Corporate Tax System
- Economic Entity Income Tax law regulates relations concerning the imposition of tax on income of the following economic zones:
An economic entity formed under the laws of Mongolia and their subsidiaries and representative offices;
A foreign economic entity that has a headquarter located in Mongolia;
A foreign economic entity earning income in Mongolia and its representative offices.
Incentives
- There is a 50% tax credit for economic entity with the following activities:
Cereals, potatoes and vegetables;
Milk;
Fruits and berries;
Fodder plants.
- Investment credit may be available for certain types of industry.
Concepts of Income Tax
- 10% should apply for the first annual income of 3 billion Mongolian MNT;
- 25% should apply for any excess of 3 billion MNT.
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