A small number of tax incentives are available for companies operating in Mongolia’s agricultural and mining sectors. Tax incentives such as quick depreciation and amortization for tax purposes, tax exemption from specific taxes, tax loss carry forward, and deductions for employee training costs from taxable income are available for the entities which are specified in the Law of Investment. The Investment Environment section of this publication (page 16) provides more information on tax incentives for investors, including tax stabilization.
Not only this, but also the types of income earned in Mongolia that are listed below can have corporate income tax credits:
- Interest earned from bonds that are issued by the Development Bank of Mongolia and the Government
- Income derived from sale of its portion of product and earned by non-resident but operates in Mongolia under a product-sharing contract in oil industry
- Net income of the cooperative earned from product sales marketed for its member
- Income of the entity that employs over 25 employees whose two thirds or more than two thirds of whom are people with disabilities.
- Income earned from spare parts and equipment that are manufactured and traded in the territory of Mongolia with the purpose of utilizing them in the production line of small and medium enterprises
- Income of loan guarantee agencies earned from main operations as stated law
- Income earned from selling eco-friendly technology and equipment that decreases environmental pollution and preserves natural resource, and dispose of hazardous waste
- Income earned from selling the innovation goods that are locally manufactured, work and service by a start-up companies that are stated in the Law on Innovation during 3 year period starting from the date of registration with the IPSRO.
- Income earned from the premium charged by Savings deposit insurance fund
- Income earned from the investment fund stated in the Securities Law of Mongolia
- Tax incentives connected with specific types of investment made into Free Trade zones of Mongolia
A general move towards equal treatment between domestic and foreign investors has taken place, with historic tax incentives available for foreign investment in recent years have declined in last few years.
