Mongolia’s parliament has approved new changes to corporate income tax laws and personal income tax laws.
It also introduced a capital gains tax on stock and securities transactions.
The laws will go into effect starting 1 July 2024.
Under the new amendments, entities engaged in activities regulated by the “Law on Securities Market” are required to withhold taxes on the sale of stocks, bonds, and other securities.
The tax rate for resident taxpayers will be 10% of the taxable gain. The tax rate for non-residents will be 20% tax on the gross proceeds. Tax credits on securities transactions in the domestic primary and secondary markets will be granted at 90% from 2024 to 2026 and reduced to 50% from 2027 to 2029.
Other tax-related developments include:
- Starting 1 January 2024, foreign visitors to Mongolia staying less than 90 days can enjoy tax-free shopping. The VAT on their shopping will be refunded in cash and non-cash forms.
- The capital city tax for service industry entities will be increased to 2% of sales or market price, effective 1 January 2024.
- Resident taxpayers can carry forward verified tax losses and can deduct them from taxable income for up to four years after the 2023 tax year.
- The Mongolian government submitted the Investment Law Bill incorporating non-tax incentives for investors in June 2023.
