The Parliament adopted nine independent and 20 revised laws in 2017. The revised personal income tax law still faces criticism and opposition from the society, especially the high-income population.

The revised personal income tax, which was approved on April 14th, 2017 has become effective from January 1st, 2018.
According to the amendments, the graduated personal income tax will be as follows:
10 percent (the same) for individuals with monthly income of 1.5 million tugriks or lower
15 percent for individuals with monthly income of 1.5-2.5 million tugriks
20 percent for individuals with monthly income of 2.5-3.5 million tugriks
25 percent for individuals with monthly income of 3.5 million tugriks and higher
However, individuals with incomes higher than 1.5 million tugriks will be subject to different tax regimes. For example, a mining worker with a monthly salary of 2.5 million tugriks will pay 10 percent Personal income tax on the 1.5 million of his salary, and 15 percent on the rest of his salary up to 2.5 million. In other words, a mining worker with a salary of 2.5 million tugriks will not pay 20 percent of his whole salary.
There are non-resident taxpayers in Mongolia. Foreigners, who live in Mongolia temporarily, used to pay 10 percent Personal income tax. Starting from January 1st, non-residents will pay 20 percent tax.
According to National Statistics Office, the average monthly wage in Mongolia stands at 398 USD (966,000 tugriks) as of August 2017. On the other hand, individuals to pay 25 percent personal income tax account to 1.6 percent of total employed people in Mongolia.
As a result of the revised tax law, the budget revenue is projected to increase by 27 million USD annually.

Published Date:2018-01-03