Mongolia: Amendments to corporate income tax and individual income tax law; other tax-related developments
Capital gain tax on the sale of stocks and securities, effective from 1 July 2024
The Mongolian Parliament approved new amendments to the corporate income tax and individual (personal) income tax law, introducing a capital gain tax on the sale of stocks and securities, effective from 1 July 2024.
Entities with regulated activities under the Law on Securities Market will need to withhold taxes on the sale of bonds, stocks, and other securities. The tax rate for resident taxpayers will be 10% on the taxable gain, while for non-residents, it will be 20% on gross proceeds. Tax credits are available for the sale of securities on the domestic primary and secondary market at the rate of 90% between 2024 and 2026, and then 50% between 2027 and 2029.
Read an April 2024 report prepared by the KPMG member firm in Mongolia, which also provides information on the following tax-related developments:
- Foreign travelers to Mongolia who stay in the country for less than 90 days are eligible for tax-free shopping from 1 January 2024. The value added tax (VAT) refund is available in both cash and non-cash forms.
- The property tax in Ulaanbaatar is imposed according to the district location at the rate of 0.6%, 0.8%, and 1% based on capital city land location and valuation within five zones.
- A capital city tax that applies to entities in the service industry has increased to 2% of the sales amount or market price effective from 1 January 2024.
- Mongolia has tax information exchange agreements (TIEA) with 143 countries as of November 2023.
- Taxpayers can carry forward confirmed tax losses and deduct them from taxable income for up to four consecutive years following the 2023 tax year.
- Changes and developments have been made within the authorities’ electronic systems in Mongolia for the social health insurance system.
- A working group was established under the Budget Standing Committee to analyze the tax environment and make suggestions for tax reform.
- The Investment Law Bill, which includes non-tax incentives for investors, was submitted by the government in June 2023.
- The parliamentary elections in 2024 will be held on 28 June 2024.