Operating losses can be carried forward for 2 years. However, carried forward losses can be offset up to 50% of taxable income in the tax year. Carry back of losses is not permitted in Mongolia.
Companies engaged in the mining and infrastructure activities can carry forward losses for 4 to 8 years, depending on the amount of investment and other government regulations. There is no restriction on the utilization of these losses.
See Note on proposed tax reform at the beginning of this chapter.