Activities Eligible for Tax Deductions www.gogo.mn
According to the amendments made to Article 22.9 of Mongolia's Corporate Income Tax Law (CIT Law), businesses are now eligible for tax deductions on certain expenses related to corporate social responsibility (CSR). The deduction amount is limited to up to 1% of taxable income for the tax year. The following categories of activities and expenses qualify for tax deductions:
Activities Eligible for Tax Deductions:
Environmental Protection
Investments aimed at protecting natural resources such as forests, animals, and water; increasing reserves; reducing pollution of air, water, and soil; and mitigating desertification.
Support for the Elderly and People with Disabilities
Expenses related to services for the elderly, care for individuals with disabilities, creation of accessible environments, and construction or maintenance of children’s playgrounds, camps, and public parks.
Preservation of Cultural Heritage
Activities that involve the preservation, restoration, and support of museums, libraries, music, film, handicrafts, performing arts, and the construction and maintenance of cultural complexes.
Public Infrastructure Development
Construction, maintenance, and beautification of public roads, parks, and green spaces, as well as support for the development of public transportation.
Disaster Relief
Expenses incurred to address and mitigate damages caused by natural disasters or similar unavoidable events.
Support for Sports
Construction and maintenance of sports facilities, organization of Olympic sports competitions, and financial support for national Olympic committee-registered sports associations, teams, and athletes.
Scholarships for Education
Tuition scholarships provided to students in priority fields designated by the Government, students studying at accredited domestic and foreign universities, and vocational training institutions.
Support for Research and Development
Grants provided to universities and the Academy of Sciences for research and study purposes.
Support for Public Education and Health Institutions
Financial support for operations of state and local government-owned educational and healthcare institutions.
Government Special Funds
Investments in activities related to government-designated special funds.
Monitoring and Standards
Requirements and standards for projects and activities eligible for deductions under Article 22.9 are to be defined and monitored by the relevant government ministry.
This amendment aims to encourage corporate social responsibility among businesses, supporting public welfare by providing tax incentives for investments in these areas.
Published Date:2024-10-29