KPMG Mongolia Tax Newsletter | 22 July 2026

Welcome to our July tax newsletter which we hope to keep you updated on the recent regulation changes and other important updates. Should you have any questions as to how these changes may impact you or your business, then please get in touch.

Mongolia’s tax reform initiative has been under discussion for nearly two years, following the Government of Mongolia’s 2024–2028 Action Program to renew and improve tax legislation. During this period, the draft amendments were subject to public comments and extensive discussion.

Following a prolonged revision process, draft amendments to key tax laws were submitted to Parliament in December 2025 and were passed during the 2026 spring parliamentary session, with implementation planned from 1 January 2027. Although the initiative has commonly been described as tax reform, the approved changes are largely amendments to the existing tax legislation rather than a comprehensive reform of the current tax system.

Pease refer to the attached publication for more details of the key tax amendments.

The Parliament of Mongolia officially passed the Law on Economic Freedom in early July 2026. This law aims to protect property rights, eliminate bureaucratic barriers, and secure the freedom to run businesses, invest, and work.

Key objectives of this new legal reform:

• Amendments to other laws: Together with accompanying legislation of Economic Freedom Law, the amendments will be made to over 110 laws to significantly reduce government permits.
• Legal guarantees: Government interference in private business is strictly banned to reinforce constitutional property and business rights.
• Capital market taxing: Withholding tax on interest income for foreign and domestic debt instruments was cut from 20% to 5%.
• Tax relief extension: The 90% tax reduction on publicly traded securities, originally set to expire, was extended until 2034.

As the Law on Economic Freedom represents a landmark reform, the full package of final legislative changes has not yet been published or made available on public legal platforms. Once further details are finalized and publicly available, we will issue a separate tax newsletter covering the Economic Freedom Law and its related amendments in more detail.

Source:

Ulaanbaatar securities exchange, https://www.ubim.mn/a/852

Mining.mn, https://mining.mn/content/2872

The General Customs Authority officially announced that it launched the activities of the working group responsible for drafting the revised Customs Law on 2 July 2026.

The currently effective Customs Law and the Law on Customs Tariffs and Customs Duties have been in force since their adoption in 2008 and have fulfilled their intended functions for 18 years. During this period, these two key laws have undergone approximately 240 amendments and revisions of varying scope. In addition, other legislation governing customs-related matters has also been amended and updated over the time. The Ministries and relevant Authorities emphasized that these fast-changing environment have created an urgent need for a comprehensive revision of the Customs laws and legislation.

According to the General Customs Authority, the revised Customs Law will focus on aligning the legal framework with digital transformation, artificial intelligence, e-commerce, and the evolving environment of data exchange. The objective is to establish a flexible and implementation-friendly legal system that can adapt quickly to changing circumstances, while ensuring full compliance with Mongolia’s international commitments and the best international customs standards and practices.

Going forward, opinions and suggestions from public - citizens, businesses, and participants in foreign trade activities will be openly collected and incorporated into the draft revised law.

Source: https://www.gov.mn/news/n/7c18

DID YOU KNOW?

Mongolia Tax Profile

As trusted tax advisors, we constantly listen to our clients and aim to deliver insights and best practices. To review our previous tax newsletter and alert, you can visit our page Mongolia tax newsletter.

We also would like to remind some key dates in the next week:

We hope you enjoy the Summer months this year with plenty of sun around to get us all up and active and enjoying the great outdoors.

Thank you