Corporate Income Tax Overview
A concise guide to corporate income tax rates, incentives, and the simplified regime for small, medium, and large enterprises in Mongolia.
Corporate Income Tax Overview
For any small or medium-sized enterprise in Mongolia, managing taxes efficiently is essential. This not only helps ensure your reports comply with Mongolian tax law but also saves you money. Under the updated laws, you may be able to reduce your tax burden.
Specific Tax Information:
Medium–Large Enterprises (MNT 1.5 billion – 6 billion taxable income)
•10% tax (up to MNT 6 billion), MNT 600 million + 25% on the portion exceeding MNT 6 billion.
•The 90% rebate does not apply.
•Excluded sectors: mining, petroleum, alcoholic beverages, tobacco, fuel production/trade, etc. (CIT Law Arts 22.1.1–22.1.3, 22.8).
Medium Enterprises (MNT 300 million – 1.5 billion taxable income)
•Pay 10% tax and receive a 90% rebate → effective rate 1% (CIT Law Arts 22.1–22.2).
•Excluded sectors apply as above.
Small Enterprises (≤ MNT 300 million taxable income)
•Flat 1% tax (CIT Law Art 20.2.7).
•Excluded sectors apply as above.
Micro Traders/Service Providers (previous year’s turnover < MNT 50 million)
•“Simplified regime” – 1% tax on total turnover (CIT Law Art 29).
•No other incentives apply; exit the regime if VAT-registered or entering an excluded sector.
Professional Advice
It is essential to keep accurate, well-documented records of all income and expenses. By choosing Beta Zeno Finance, you can access professional accounting and financial services in compliance with Mongolian tax law, accounting standards, and International Financial Reporting Standards (IFRS).
Next up, recognizing revenue under IFRS 15.
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