The taxable income, including capital gains, of a resident company is subject to corporate tax (‘CIT’) at the following progressive rates:
Up to MNT 3 billion 10%
More than MNT 3 billion 25%
Companies eligible for tax incentives are subject to reduced CIT (See Sec.10 below).
However, a number of other rates apply on incomes which are taxed on a gross basis, as given below:
|Nature of Income||Rate of Tax|
|Capital gain from the sale of immovable property||2%|
|Dividend income received by a resident company from another resident company||10%|
|Royalties and interest||10%|
|Gambling, betting games and lotteries||40%|
|Sale of rights in mining licenses, special activity licenses and other rights granted by the authorized organizations for conducting specific activities (see Sec. 5.1.)||30% on gross proceeds|
There is no minimum tax.