Global Property Guide

Financial Information for Residential Property Buyers


Mongolia has high income taxes for non-residents

August 23, 2017

INDIVIDUAL TAXATION

Nonresidents are taxed on their Mongolian-sourced income. Married couples are assessed and taxed separately.

Mongolia hillside properties

INCOME TAX

Nonresident individuals are subject to the same withholding tax rates as nonresident companies. Income of nonresident individuals is taxed at a flat withholding tax rate of 20%.

RENTAL INCOME
Rental income earned by nonresident individuals is taxed at a flat rate of 10%, withheld by the tenant.

CAPITAL GAINS TAX

Capital gains realized from selling real property is considered as ordinary income and taxed at a flat rate of 2%. The tax is levied on the gross proceeds and no deductions are allowed.


PROPERTY TAX


Property Tax

Property tax is levied at a flat rate of 0.60% on Mongolian real property. The tax base is the property value is that registered with the government registration authority. If the property is unregistered, the tax base is the property's insured value. If the property is both unregistered and uninsured, the tax is levied on the property's accounting value.

CORPORATE TAXATION

INCOME TAX

Income earned by companies is liable for corporate income tax of 10% for taxable income up to MNT3 billion (US$1,492,537). Companies are liable for corporate income tax of 25% for taxable income exceeding MNT3 billion (US$1,492,537). Income-generating expenses are deductible when calculating taxable income.

INCOME TAX

TAXABLE INCOME, MNT (US$) TAX RATE
Up to 3 billion (US$1,492,537) 10%
Over 3 billion (US$1,492,537) 25% on band over US$1,492,537

CAPITAL GAINS TAX

Capital gains realized from selling real property is considered as ordinary income and taxed at a flat rate of 2%. The tax is levied on the gross proceeds and no deductions are allowed.

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