Tax on property income in Mongolia

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

Nonresidents earning capital gains realized from selling real property are taxed at a flat rate of 20%. The tax is levied on the gross proceeds and no deductions are allowed.


PROPERTY TAX


Property Tax

Property tax is levied on Mongolian real property at a rate of 0.60% to 1%. The applicable tax rate depends on several factors, such as the location of the property, the size of the property, and other factors.

CORPORATE TAXATION

INCOME TAX

Income earned by companies is liable for corporate income tax of 10% for taxable income up to MNT6 billion (US$2,985,075). Companies are liable for corporate income tax of 25% for taxable income exceeding MNT6 billion (US$2,985,075). Income-generating expenses are deductible when calculating taxable income.

INCOME TAX 2020

TAXABLE INCOME, MNT (US$) TAX RATE
Up to 6 billion (US$2,985,075) 10%
Over 6 billion (US$2,985,075) 25% on band over US$2,985,075

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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