Expenses incurred for the purpose of business are deductible unless they are specifically disallowed.
The following general expense types are not deductible or have limited deductibility for Mongolia tax purposes:
- Expenses incurred in earning exempt income
- Undocumented expenses
- Payments from which tax is withheld incorrectly
- Rental payments under finance lease
- Fines and penalties imposed by the tax authorities
- Organizational and start-up expenses
- Bribes, kickbacks and illegal payments
- Charitable contributions except for donation to vocational training fund
- Voluntary contribution to social insurance fund exceeding 15% of taxable income
- Regular maintenance expenses in excess of 2% of book value of immovable property and 5% of book value of other property
- Natural disaster restoration fees