background image
8.1.1. Corporate Income Tax

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

Alternate Minimum Tax

There is no minimum tax.