Mongolia • No. 08/2022 • October 2022
The Mongolian government delivered the 2023 budget law and related bills to the Parliament on September 29, 2022. The objectives intended to advance the securities market and IT industry, promote the business climate, and develop new sources of budget revenue were adhered to in the creation of the 2023 budget law. With this tax and legal information, we present to you the main proposed changes to the tax law.
The Law on Personal Income Tax (“PIT”):
Based on common international experience, in order to reduce income inequality, the Ministry of Finance has made a proposal to impose PIT on salaries, wages, equivalent income and indirect income at a “progressive rate" starting from 2023. According to the presentation of the bill, the change in the law will affect 0.1 percent of citizens with total salary income.
How it works?
Annual net income (MNT) | Tax Rate (%) |
0-120 million | 10% |
120 - 180 million | 12 million MNT plus 15% on income exceeding MNT 120 million |
More than 180 million | 21 million MNT plus 20% on income exceeding MNT 180 million |
Corporate Income Tax (“CIT”) Law: