With this Tax and Legal Alert, we present you some of the main amendments and changes made to the tax legal environments approved by the Parliament of Mongolia effective 2023

Mongolia • No. 01/2023 • January 2023

The purpose and main outcomes of these amendments and changes in the tax legal environment can be summarised as follows:

• Provide tax policy supports on movement of factories and warehouses from Ulaanbaatar to rural areas, creation of new assets in rural areas, and hiring new employees in rural areas;
• Provide tax policy supports for investment funds, start-up companies producing innovative products, works, and services, heat and electricity generation projects, and initial public offerings of shares on foreign and domestic stock exchanges;
• Introduction of progressive Personal Income Tax rates for the employment income;
• Enhance information exchange system of tax authorities, expansion of information collected in the integrated database of tax registration and information; and
• Establishment of legal framework for asset valuation for tax purposes.

Amendments:

1. Amendments and changes to the Corporate Income Tax (CIT) Law
   
2. Changes and amendments made to the Personal Income Tax Law (PIT) effective 2023, employment income taxes will be taxed at progressive rate:
3. Amendment made to the General Taxation Law (GTL) effective from 2023
4. Amendments and changes made to the Immovable Property Tax (IPT) effective from 2022
5. Revision of the Asset Valuation Law
6. Amendments and changes made to the Law on Minerals effective from 2023