Mongolia - Other taxes and levies

Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes in your country? If so, what are the rates for employers and employees?

The Mongolian Social Secuirty System provides for pension, health, disability and unemployment benefits, amongst others. Participation is mandatory for all Mongolian citizens, foreigners and stateless persons employed within the territory of Mongolia.

The employee contributions are capped at the minimum wage amount (currently MNT 240,000 per month) whilst the employer contributions are uncapped and range from 11% to 13% of the employees’ remuneration.

The employers are responsible for withholding social security contributions and transferring them to the relevant authorities on a monthly basis.

Type of insurance Paid by employer Paid by employee Total
Pension Insurance 7% 7% 14%
Benefit Insurance 0.8% 0.8% 1.6%
Health Insurance 2% 2% 4%
Industrial Accident Insurance 1-3% 0% 1-3%
Unemployment Insurance 0.2% 0.2% 0.4%
Total 11-13% 10% 21-23%

Pension Plan

Workers who have contributed to Social Security are eligible for social security benefits. Pension benefits are paid to a worker or the worker’s family upon their retirement, disability or death.

Private pension plans are not typically offered by Mongolian employers. Unless specifically allowed for under the treaty provisions, pension contributions to a foreign pension plan are not typically allowed as a deduction from taxable income, and any pension contributions made to a foreign pension plan by the employer on employee’s behalf constitute part of the employee’s taxable income.

Employment insurance

Aid benefits are paid to a worker or the worker’s family upon disability, pregnancy or death. The amount of the benefit paid to a beneficiary depends on a number of factors, including their salary and the number of years they have contributed to Social Security. Health benefits are paid in case of a worker’s illness.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in your country?

No

Real estate tax

Are there real estate taxes in your country?

Immovable property tax applies to land and other immovable property at a rate between 0.6% and 1%, depending on the location, size and supply and demand of the property. The value of the property is determined in accordance with the state registry. Tax is calculated annually and paid in either quarterly installments (in case of corporate entities) or annually (by individual taxpayers).

Sales/VAT tax

Are there sales and/or value-added taxes in your country?

In Mongolia, VAT is imposed on goods imported into and exported out of Mongolia, as well as any goods produced or sold, work performed or services provided in Mongolia.

The standard VAT rate in Mongolia is 10% of the taxable value of the goods and services.

Mongolian residents may reclaim part of the VAT paid during the year by registering on a dedicated VAT refund portal and scanning in all elgibile VAT receipts. This also gives them an automatic entry to a monthly state lottery with cash prizes.

Unemployment tax

Are there unemployment taxes in your country?

Unemployment insurance (employer: 0.2%, employee: 0.2%) is charged as part of the compulsory Social Health Insurance (see above)

Other taxes

Are there additional taxes in your country that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Excise tax

Excise taxes in Mongolia are imposed on:

  • Alcohol
  • Tobacco
  • Gasoline and diesel fuel
  • Automobiles
  • Quizzes and gambling equipment and activities.
Rates vary from 0.0% to 15.0% depending on the type of product.

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