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8.2.2. Withholding Taxes

See Note on proposed tax reform at the beginning of this chapter for information on proposed tax reform impacting withholding taxes (‘WHT’).

The WHT rates currently levied on income received / derived by non-residents from sources within Mongolia are as below, unless reduced under a tax treaty:

Dividend

Tax is withheld at 20% on dividend paid by Mongolia resident entities to non-residents.

Interest

Tax is withheld at 20% on interest paid by Mongolia resident entities to non-residents. Tax is withheld at 10% on interest paid on bonds issued by resident commercial banks to non-resident bondholders.

Royalty Copyright

Tax is withheld at the rate of 20% on royalties paid to non-residents.

Royalty Patent

Tax is withheld at the rate of 20% on royalties paid to non-residents.

Royalty Trademark

Tax is withheld at the rate of 20% on royalties paid to non-residents.

Service Management

Tax is withheld at the rate of 20% on service management fees paid to non-residents.

Service Technical

Tax is withheld at the rate of 20% on service technical fees paid to non-residents.

Others

Tax is withheld at the rate of 20% on payments made to non-residents in respect of rental income, lease interest, use of tangible and intangible assets, goods sold in Mongolia and services rendered in Mongolia either directly or via the internet or other electronic means.

Below is a discussion of domestic withholding tax rules for most of the common cross border payments.

Capital Gains 2.0 %
Dividends 20.0 %
Interest 20.0 %
Royalty Copyright 20.0 %
Royalty Patent 20.0 %
Royalty Trademark 20.0 %
Sales 0.0 %
Service Management 20.0 %
Service Technical 20.0 %

* Rates are current as of 27 November 2022