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8.2.1. Corporate/Profit Taxes

A non-resident entity having a permanent establishment (‘PE’) in Mongolia is subject to tax on income earned by such PE in Mongolia at the same progressive tax rates as for resident companies i.e. at 10% - 25%. Remittance tax or branch profit tax at the rate of 20% is also applicable on the remittance of after-tax profits to the foreign head office.

Income and dividend derived by a non-resident, operating in oil industry, from sale of its share of product under a product-sharing contract, are exempt in Mongolia.

Mongolia sourced income earned by non-residents not having a PE in Mongolia, is subject to withholding tax in the country (See Sec. 8.2.2. below).