This post provides a clear breakdown of the corporate tax regime in Mongolia for 2025. The information below covers tax rates, progressive brackets, and relevant surcharges for corporations operating in Mongolia.
Corporate Tax Overview in Mongolia
Mongolia applies a progressive tax regime for corporations, using the Mongolian tögrög (MNT) as its currency. In 2025, the assessment basis remains strictly corporate, and tax rates vary based on the company’s taxable income.
Progressive Corporate Tax Rates (2025)
Corporate tax in Mongolia is charged on a sliding scale depending on company profits. The following brackets are applied:
| Taxable Income (MNT) | Rate (%) |
|---|---|
| ₮0 – ₮300,000,000 | 1% |
| ₮300,000,001 – ₮6,000,000,000 | 10% |
| ₮6,000,000,001 and above | 25% |
For reference, as of early 2025, the approximate exchange rate is ₮3,400 = $1 USD (using recent market rates). For instance, the lowest bracket (₮300,000,000) equates to about $88,235.
Surtaxes and Special Conditions
Mongolia imposes a specific surtax in certain circumstances. If a company transfers mining licenses or rights for strategically important mineral deposits by the beneficial owner, a 30% surtax is applied.
| Condition | Surtax Rate (%) |
|---|---|
| Transfer of mining licence or rights for strategically important mineral deposits by beneficial owner | 30% |
No minimum or maximum holding periods apply for these corporate tax rates or the additional mining surtax.
Key Points: Corporate Tax Calculation
- Rate Type: Progressive, based on total corporate taxable income
- Currency: Mongolian tögrög (MNT)
- Progressive Brackets: 1%, 10%, and 25%
- Sector-Specific Surtax: 30% for qualifying mining rights transfers
Pro Tips for Managing Corporate Tax in Mongolia
- Carefully monitor taxable income throughout the financial year to anticipate the correct bracket and plan accordingly for cash flow impacts.
- If engaged in the mining sector, review all proposed transactions for transfer of strategic mineral rights to assess potential exposure to the 30% surtax.
- Document and reconcile all income and deductions thoroughly; Mongolia’s progressive system requires precise records to ensure correct bracket application.
- Consult the latest updates directly from Mongolia’s General Department of Taxation for any changes that may affect your specific business case. The official resource is available at mta.gov.mn.
Additional Considerations for 2025
Official figures do not specify a flat corporate tax rate, so companies must use the provided income bands to calculate their liability. Taxpayers in sectors with potential for surcharges, particularly mining, should be especially diligent.
To summarize: Mongolia’s corporate tax structure in 2025 uses a clear, progressive scale from 1% to 25%, making it essential for businesses to track income closely. The additional 30% surtax on mining transactions is highly targeted but can be significant for affected corporations. Accurate planning and direct consultation with the official tax authority are advisable for any organization operating in Mongolia.