Mongolia has ratified the Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting (MLI) on 30 September 2024, which takes effect on 1 January 2025.

As of February 2025, the Organisation for Economic Co-operation and Development (OECD) MLI database indicates that 19 of the 26 partner countries with which Mongolia has income tax treaties are now covered under the MLI framework.

The BEPS MLI Matching Database is a key tool for stakeholders in the implementation and application of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (BEPS MLI). It presents detailed up-to-date information on the application of the BEPS MLI to tax treaties.

Earlier, on 6 October 2022, Mongolia signed the Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting during the 14th Inclusive Framework on BEPS meeting in Paris.

In addition, Mongolia announced various direct and indirect tax changes, such as tax incentives for socially responsible investments and new excise duties on sweetened beverages.

Tax incentives for CSR investments

In late 2024, Mongolia amended its corporate income tax law to encourage social responsibility and investments. The changes will remain in effect until January 2035, which will allow businesses to deduct investments in fixed assets for socially responsible activities and donations, capped at 1% of taxable income for the tax year.

Excise taxes for sugar beverages

Starting 1 January 2027, Mongolia will impose excise taxes on sweetened beverages containing over 5g of sugar per 100ml. The tax rates are set at MNT 500 per litre in 2027, MNT 525 in 2028, and MNT 550 in 2029.