18.01.2018

Personal Income Tax

Personal income taxation law has been amended on 14 April, 2016 , taking effect on 1 January 2018. The personal taxation was 2 leveled system prior to this amendment. As a result of this amendment, 4 leveled system has been introduced and taxation percentage will be increased if a)annual income of salary, compensation, bonus pay, overtime pay, annual leave allowance and other similar earnings under employment agreement and service agreement, consultancy service agreement or other similar agreement. b)any earning, compensation, allowance, gift and bonus pay to the employee or to employee’s family member, other similar earnings to member of Board of Directors, Supervisory board etc increases as shown in below table.

Annual taxable income amount (in MNT)

Percentage of Taxation

1

Up to 18 000 000

10%

2

More than 18 000 000 and less than 30 000 000

MNT1800 000 plus 15% of income more than 18 000 000

3

More than 30 000 000 and less than 42 000 000

MNT3 600 000 plus 20% of income more than 30 000 000

4

More than 42 000 000

MNT6 000 000 plus 25% of income more than 42 000 000

For non-resident taxpayer who was not resided more than 183 days per year, the taxable income shall be deducted by 20% as personal income taxation from 01 January, 2018. 

If you need more detailed information on personal income taxation, please contact with us.