Jurisdiction overviewTax in Mongolia
Last reviewed: · by TaxProsRated editorial
Key points
Mongolia's General Department of Taxation administers a three-bracket personal income tax (10/15/20 percent post-2023 reform), a two-tier corporate income tax (10 percent up to MNT 6 billion, 25 percent above), and VAT at 10 percent. Mining dominates the economy — Oyu Tolgoi, Erdenet, and Tavan Tolgoi together account for roughly 25 percent of GDP. A Tax Stabilization Investment Agreement framework locks rates for large mining projects. Mongolia has approximately 30 active bilateral tax treaties, including a 2001 US convention — rare among smaller Asian states.
Enkhjargal — mining-sector worker, Ulaanbaatar
Enkhjargal is an engineer at a copper processing plant on the outskirts of Ulaanbaatar. Her employer withholds PIT monthly via the payroll system. She earns above MNT 120m annually, so the 15% bracket applies to part of her income. Her employer also contributes to social insurance (12.5% employer share on top of 11.5% from her wages). She has no side business, so she does not need to file a separate annual PIT return — wage withholding covers her obligation. If she joins the growing cohort of Mongolians who trade equities or crypto, she may need a Tax-Adviser to manage the capital-gains reporting.
Who is the tax authority?
Mongolia's General Department of Taxation (GDT) sits under the Ministry of Finance. It administers income tax, VAT, and most domestic levies. Customs falls under the Mongolian Customs General Authority.
The legal foundation consists of four core statutes: the General Tax Law 2019, the Personal Income Tax Law (reformed 2019, amended 2023), the Corporate Income Tax Law, and the VAT Law.
Mongolia joined the OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and signed the Multilateral Instrument (MLI) in 2018.
What is the tax year and when are returns due?
Mongolia's tax year is the calendar year (1 January to 31 December). Wage tax is withheld monthly by employers.
Who counts as a Mongolian tax resident?
Under the Personal Income Tax Law, an individual is a Mongolian tax resident if either condition is met:
- Physically present in Mongolia for 183 or more days in the tax year
- Maintaining a principal residence in Mongolia
Residents are taxed on worldwide income. Non-residents are taxed only on Mongolian-source income. The two tests work independently — satisfying either one establishes residency.
Deep-dive: see expat and cross-border tax in Mongolia for mid-year arrival rules and treaty tie-breaker provisions.
What are the personal income tax rates?
Mongolia reformed its PIT to a three-bracket system in 2023:
| Yearly income (MNT) | Tax rate |
|---|---|
| Up to 120,000,000 | 10% |
| 120,000,001 to 180,000,000 | 15% |
| Over 180,000,000 | 20% |
Dividends from Mongolian companies are subject to 10 percent withholding tax. Capital gains are taxed at a flat 10 percent.
Employees also pay social insurance contributions on top of PIT:
| Charge | Employee | Employer |
|---|---|---|
| Social Insurance | 11.5% | 12.5% |
| Health Insurance | 2% | 2% |
Deep-dive: see self-employed tax in Mongolia for how PIT and social charges combine for freelancers and sole traders.
How does corporate tax work?
Mongolia uses a two-tier sliding corporate income tax (CIT). The rate depends on the level of taxable income in the fiscal year.
Applies to the first MNT 6 billion (~USD 1.7M) of annual taxable income. Covers most SMEs and mid-size operations in Mongolia.
Applies to taxable income above the MNT 6 billion threshold. Large mining companies and multinationals typically fall in this band.
Withholding tax on dividends paid to non-residents is 20 percent. Treaty partners receive reduced rates under applicable conventions.
Mongolia has not yet transposed the OECD Pillar Two global minimum tax. Companies may carry tax losses forward for 4 years (8 years for mining and infrastructure projects).
Deep-dive: see small business tax in Mongolia for sole-trader vs incorporated comparison.
Mining super-economy and the TSIA framework
Mining is the defining feature of Mongolia's economy. It accounts for roughly 25 percent of GDP and more than 80 percent of exports. Three deposits define the landscape:
Copper-gold deposit operated by Rio Tinto and Turquoise Hill Resources. One of the world's largest undeveloped copper deposits. Generates royalties, CIT, and dividend flows to the state.
Copper-molybdenum mine operated as a state-Russia joint venture. World's fourth-largest copper deposit by reserve. A legacy Soviet-era project still central to state revenues.
Coking coal deposit, the world's largest undeveloped reserve of coking coal. State-controlled via Erdenes Tavan Tolgoi JSC. Coal royalties are a major budget line item.
The Tax Stabilization Investment Agreement (TSIA) framework allows large mining projects with investment above USD 50 million to lock in CIT rates and royalty rates for 5 to 22 years. This provides long-term fiscal certainty for foreign mining investors and reduces renegotiation risk over project lifespans.
What about VAT and other indirect taxes?
Mongolia's standard VAT rate is 10 percent. Registration is mandatory once annual turnover exceeds MNT 50 million. Exports are zero-rated.
| Rate | Applies to |
|---|---|
| 10% | Standard — most goods and services |
| 0% | Exports (zero-rated) |
| Exempt | Selected basic goods, financial services |
Mongolia has progressively expanded its e-VAT system, which includes a consumer-cashback incentive. Purchases made at registered VAT merchants generate a lottery-style cashback to encourage invoice reporting and reduce the informal economy.
Mining and petroleum sectors face mineral royalties on top of VAT and CIT. Alcohol and tobacco carry excise duties.
Deep-dive: see VAT in Mongolia for e-VAT mechanics and the consumer-cashback programme.
MNT currency framework
Mongolian Tugrik (MNT) — floating since 1993
The Bank of Mongolia (BoM) manages monetary policy with an inflation-targeting framework. 1 USD ≈ 3,400 MNT (verify; significant 2022–23 depreciation amid global commodity-price volatility). All tax thresholds, penalties, and filing amounts are denominated in MNT. Foreign-currency transactions must be converted at the BoM official rate for tax reporting purposes.
How are cryptoassets taxed?
Mongolia does not have a dedicated crypto-asset tax law. The Bank of Mongolia has issued advisories stating that cryptoassets are not legal tender in Mongolia. Where cryptoasset gains are declared, they fall under existing income tax categories — capital gains at 10 percent flat for individuals.
Formal regulatory guidance is evolving. Taxpayers with significant crypto holdings should consult a qualified Tax-Adviser familiar with current GDT practice.
Deep-dive: see crypto taxation in Mongolia for current GDT guidance.
What is the treaty network?
Mongolia has approximately 30 active bilateral double tax agreements. The 2001 US-Mongolia convention is one of the most distinctive — Mongolia is among a small group of smaller Asian states with a US income tax treaty, alongside Japan, Korea, India, Bangladesh, Kazakhstan, and Sri Lanka.
Mongolia signed the OECD MLI in 2018. Treaty partners include Russia (1995), China (1991), Korea, Japan, Germany, France, Singapore, India, Kazakhstan, UAE, Turkey, Vietnam, Netherlands, Belgium, Czech Republic, Hungary, Poland, Austria, Switzerland, UK, Canada, Australia, and others.
Deep-dive: see tax treaty relief in Mongolia for bilateral withholding-rate schedules.
Where does Mongolia sit in the regional cohort?
Mongolia anchors the Northeast Asia + Steppe cohort alongside China, Russia, Kazakhstan, and North Korea. The region splits across five distinct tax postures:
Common pitfalls for foreign investors and expats
Foreign companies and individuals regularly encounter the same traps when operating in Mongolia:
Income above MNT 6 billion jumps from 10 percent to 25 percent. That is a 150 percent rate increase on the marginal dollar. Structuring taxable income around this threshold is a key consideration for growing businesses.
Mining companies face mineral royalties on top of CIT. The royalty framework varies by mineral type and deposit. Royalty + CIT combined effective rates for large miners differ significantly from the headline 25 percent CIT rate.
TSIA rate-lock (5–22 years) requires investment above USD 50 million. Applications must be made before project commencement. Retroactive TSIA protection is not available — timing the application correctly is critical.
Non-resident dividend withholding is 20 percent without treaty relief. Treaty countries benefit from reduced rates, but only if the convention is properly invoked with the GDT before payment.
Mongolia's PIT moved from a broadly flat 10 percent system to three brackets (10/15/20 percent) in 2023. Payroll systems and employer withholding tables must reflect the current rates — legacy payroll software may not have been updated.
Standard losses carry forward only 4 years. Mining and infrastructure get 8 years. General businesses with multi-year development cycles may exhaust their loss offset before turning profitable — model the carryforward position early.
Mongolia's e-VAT programme offers cashback incentives tied to invoiced purchases. Businesses that fail to register or issue e-VAT invoices are excluded from the programme — and may face compliance issues as enforcement increases.
Mongolia has not yet enacted OECD Pillar Two GloBE rules. Large MNE groups with Mongolian subsidiaries may still be in-scope for qualified domestic minimum top-up tax in their home jurisdiction — check the parent-country position.
When should you talk to a Mongolia tax pro?
Some situations can be handled through GDT's online portal. Others grow complicated quickly:
You can find vetted Mongolia practitioners through the directory below.
This page is general information. It is not personal guidance for your specific situation. Tax rules change. Always check current figures on the GDT website or with a licensed Mongolia practitioner before filing.
Frequently asked
Who is the Mongolian tax authority?
The General Department of Taxation (GDT), under the Ministry of Finance. The GDT administers income tax, VAT, and most domestic levies under the General Tax Law 2019. Customs falls under the Mongolian Customs General Authority. The GDT online portal is at mta.mn.
When is the Mongolian annual return due?
Corporate annual returns are due 10 February for the prior calendar year. Personal income tax annual returns are due 15 February. Wage tax is withheld monthly by employers. VAT-registered businesses file monthly returns by the 10th of the following month.
Who is a Mongolian tax resident?
Tax residents are either physically present in Mongolia for 183 or more days in the tax year, OR maintain a principal residence in Mongolia. Residents are taxed on worldwide income. Non-residents are taxed only on Mongolian-source income.
What are the Mongolian personal income tax rates?
Post-2023 three-bracket system: 10 percent on income up to MNT 120 million; 15 percent on MNT 120m–180m; 20 percent above MNT 180 million. Dividends from Mongolian companies face 10 percent withholding tax. Capital gains are taxed at a flat 10 percent.
How does Mongolia's corporate tax work?
Two-tier sliding CIT: 10 percent on taxable income up to MNT 6 billion; 25 percent on income above that threshold. Non-resident dividend withholding is 20 percent (reduced under applicable treaties). Tax losses carry forward 4 years (8 years for mining and infrastructure). Pillar Two not transposed.
What is the Mongolian VAT rate?
Standard VAT is 10 percent. Registration is mandatory above MNT 50 million annual turnover. Exports are zero-rated. Mongolia's e-VAT system includes a consumer-cashback incentive programme to encourage invoice reporting.
How does Mongolia tax cryptoassets?
Mongolia has no dedicated crypto-asset tax law. The Bank of Mongolia has issued advisories stating cryptoassets are not legal tender. Where gains are declared, they fall under existing income tax categories — capital gains at 10 percent flat for individuals.
How many tax treaties does Mongolia have?
Approximately 30 active bilateral double tax agreements. Key partners include Russia, China, USA (2001), Germany, France, Korea, Japan, Singapore, India, Kazakhstan, UAE, Turkey, Vietnam, Netherlands, UK, Canada, and Australia. Mongolia signed the OECD Multilateral Instrument in 2018.
Major tax firms in Mongolia
Verified directory of the largest accounting + tax practices operating in Mongolia. Listings are entity-level reference cards — claim flow is open to firm representatives.
- Big 4
Deloitte Mongolia
- Big 4
EY Mongolia
- Big 4
KPMG Mongolia
- Big 4
PwC Mongolia
- National
BDO Mongolia
- National
Crowe Mongolia TMZ LLC
- National
Grant Thornton Mongolia
Find a tax pro in Mongolia
Browse credentialed pros serving Mongolia — filter by specialty, language, and credential type.
Browse the Mongolia directorySources
The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.
- GDT (Mongolia) · accessed
- Government of Mongolia · accessed
- Government of Mongolia · accessed
- Government of Mongolia · accessed
- Ministry of Finance (Mongolia) · accessed
- PwC Worldwide Tax Summaries · accessed
- Government of Mongolia · accessed
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Mongolia as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.