website website
Bank Accounts website
Flag Theory website
We are not currently operating in this jurisdiction.
For a full list of countries where we operate, please click below.



If you want to do business in Mongolia, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC which is the most common company structure in Mongolia.

Mongolia imposes a tax on resident entities worldwide income. The prevailing percentage for income earned abroad, from our research, and this is not personal tax advice, is 25%. The country doesn't have known exemptions to transfer in offshore income accrured abroad. Resident companies taxable income up to MNT 3b is taxed at 10%, the excess is taxed at 25%. This ranks Mongolia as 103rd when compared to CIT globally.

The valued added tax rate in MN is 10.00%, which ranks Mongolia as 47th when compared to value added tax rate worldwide. In terms of other taxation, an employer will contribute 13% to the equivalent of a social security fund and an employee will contribute 10%. The average time to comply with a country's labor tax requirements is 48hours. Contributing to this is the number of yearly labor tax payments, which is 12 in MN.

Thin capitalization mandates are officially enacted. Thin capitalisation refers to any type of requirements on a business and the debt-to-asset ratios. Dividends paid by a domestic company to other domestic company is subject to withholding tax at 10% rate. Dividends received may be also included in corporate income tax base. Dividends are payments of a company's earnings, determined by the board, to a class of its shareholders. Dividends can be one of the following cash payments, shares of stock, or other property. Capital Gains are subject to corporate income tax standard rate, except sales of immovable property, subject to tax of 2% on gross sales. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 20%. Which means that the tax authorities expects companies to pay tax on 20% of interests remitted abroad. The dividends withholding tax rate is 20%. This should be interpreted that usually the taxman expects relevant legal entities to automatically withhold 20% of payments abroad on dividends. The royalties withholding tax rate is 20%. This means that the taxman expects LLC's to withhold 20% of royalties paid to non-residents. Withholding tax rates may be reduced under a tax treaty.
There is no known tax on wealth in Mongolia. There are no known inheritance and transfer taxes. There is a real property tax. There are certain tax reductions for certain economic activities, foreign investment incentives and free trade zones with certain tax reliefs.

The above is not tax or legal advice for your company circumstances. We are able to point you to a lawyer in Mongolia who can give you the proper advice and help you need. Press incorporate now if you are in a hurry or click the free consultation button above.

Country details

Ulan Bator
mn, Russian

Tax treaties

Country Type Date Signed
Korea, Republic of DTC  1992-04-17
Russian Federation DTC  1995-04-05
Poland DTC  1997-04-18
Switzerland DTC  1999-09-20
Austria DTC  2003-07-03
Italy DTC  2003-09-11
United Arab Emirates DTC  2001-02-21
Malaysia DTC  1995-07-27
Canada DTC  2002-05-27
Luxembourg DTC  1998-06-05
Kazakhstan DTC  1998-03-12
United Kingdom DTC  1996-04-23
Turkey DTC  1995-09-12
Czech Republic DTC  1997-01-27
Germany DTC  1994-08-22
India DTC  1994-02-22
Ukraine DTC  2002-07-01
Belgium DTC  1995-09-26
Singapore DTC  2002-10-10
Netherlands DTC  2002-03-08
Indonesia DTC  1996-07-02
China DTC  1991-08-26
Hungary DTC  1994-09-13
France DTC  1996-04-18

Tax treaties Map



Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites,,,, is subject to our terms and conditions.


Flag Theory is an internationalization and offshore solutions provider, and the creator of We offer expert consultation advice and assistance.

Your privacy is important for us and we will keep your information secure. View our privacy policy

View past newsletters

Consultation with

Flag Theory is an internationalization and offshore solutions provider, and the creator of

In order to better serve you, we ask that you please fill out the following form as accurately as you can and provide as many details as possible. Thank you.

Your privacy is important for us and we will keep your information secure. View our privacy policy