The Government, led by Prime Minister J.Erdenebat, introduced its plan to lower budget deficit by rising eight types of tax rates and slashing salaries for executives of state-owned enterprises to the member of parliaments. If the plan wins majority support from MPs, the plan will come into effect immediately.
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Personal income tax (PIT) |
The taxes will be imposed on individuals with annual income of more than MNT 30 million. If individual gets monthly salary higher than MNT 2.5 million, individual will pay 25 percent of taxes. Therefore, individual with MNT 4 million salary will pay 10 percent of taxes on MNT 2.5 million and 25 percent of taxes on remaining MNT 1.5 million. |
Currently, individuals pay 10 percent of PIT in Mongolia. According to the survey conducted by KPMG global audit service in 2016, average PIT rates in Asian countries stands at 28 percent, in European Union at 39 percent and OECD member countries at 42 percent while average personal income tax rates of the world stands at 33 percent. |
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Tax on savings income |
The taxes on saving income will effect on Jan, 2017. |
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Vehicle excise duty will be increased depending on engine capacity and aging
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MNT 750,000 will be levied on vehicles with 1500 cubic centimeters or less engine capacity |
Current tax rate is MNT 725,000 |
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MNT 1,520,000 will be levied on 0-3 year old vehicles with 1501-2500 cubic centimeters engine capacity |
Current tax rate is MNT 1,450, 000 |
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MNT 2,250,000 will be levied on 4-6 year old vehicles with 1501-2500 cubic centimeters engine capacity |
Current tax rate is MNT 2,175,000 |
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MNT 3 million will be levied on vehicles with 2501-3500 cubic centimeters engine capacity |
Current tax rate is MNT 2,9 million |
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MNT 15 million will be levied on 0-3 year old vehicles with 4501 cubic centimeters engine capacity |
Current tax rate is MNT 10,150,000 |
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Excise taxes on alcoholic |
Excise taxes rates on alcohol and tobacco will be increased by 20 percent |
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The Minerals Resource Rent Tax (MRRT) |
Gold explorers to pay 5 percent of MRRT |
Current rates of MRRT is 2.5 percent |
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Import duty rate for importing old spare parts |
Tas rates will be increased to 20 percent |
Current tax rate is at 5 percent and it is common in Mongolia to assemble car by importing old spare parts |
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Luxury property tax |
50 percent of Immovable property tax will be imposed on apartments that are more than 150 square meter |
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The Government, led by Prime Minister J.Erdenebat, introduced its plan to lower budget deficit by rising eight types of tax rates and slashing salaries for executives of state-owned enterprises to the member of parliaments. If the plan wins majority support from MPs, the plan will come into effect immediately.
|
Personal income tax (PIT) |
The taxes will be imposed on individuals with annual income of more than MNT 30 million. If individual gets monthly salary higher than MNT 2.5 million, individual will pay 25 percent of taxes. Therefore, individual with MNT 4 million salary will pay 10 percent of taxes on MNT 2.5 million and 25 percent of taxes on remaining MNT 1.5 million. |
Currently, individuals pay 10 percent of PIT in Mongolia. According to the survey conducted by KPMG global audit service in 2016, average PIT rates in Asian countries stands at 28 percent, in European Union at 39 percent and OECD member countries at 42 percent while average personal income tax rates of the world stands at 33 percent. |
|
Tax on savings income |
The taxes on saving income will effect on Jan, 2017. |
|
|
Vehicle excise duty will be increased depending on engine capacity and aging
|
MNT 750,000 will be levied on vehicles with 1500 cubic centimeters or less engine capacity |
Current tax rate is MNT 725,000 |
|
MNT 1,520,000 will be levied on 0-3 year old vehicles with 1501-2500 cubic centimeters engine capacity |
Current tax rate is MNT 1,450, 000 |
|
|
MNT 2,250,000 will be levied on 4-6 year old vehicles with 1501-2500 cubic centimeters engine capacity |
Current tax rate is MNT 2,175,000 |
|
|
MNT 3 million will be levied on vehicles with 2501-3500 cubic centimeters engine capacity |
Current tax rate is MNT 2,9 million |
|
|
MNT 15 million will be levied on 0-3 year old vehicles with 4501 cubic centimeters engine capacity |
Current tax rate is MNT 10,150,000 |
|
|
Excise taxes on alcoholic |
Excise taxes rates on alcohol and tobacco will be increased by 20 percent |
|
|
The Minerals Resource Rent Tax (MRRT) |
Gold explorers to pay 5 percent of MRRT |
Current rates of MRRT is 2.5 percent |
|
Import duty rate for importing old spare parts |
Tas rates will be increased to 20 percent |
Current tax rate is at 5 percent and it is common in Mongolia to assemble car by importing old spare parts |
|
Luxury property tax |
50 percent of Immovable property tax will be imposed on apartments that are more than 150 square meter |
|