The tax reform package will gradually reduce the tax burden by a total of MNT 2.7 trillion.

Of this amount, the tax burden on citizens will be reduced by MNT 2 trillion, while the burden on business entities will decrease by MNT 700 billion, according to information provided by the Ministry of Finance and the General Department of Taxation during a meeting on the tax reform package.

Under the revised draft law, the corporate income tax brackets will be adjusted, imposing a 15 percent tax on annual income between MNT 6 billion and MNT 10 billion, and a 25 percent tax on income exceeding MNT 10 billion. The simplified tax threshold for micro and small businesses will be raised to MNT 400 million, allowing them to pay a 1 percent tax.

In addition, the threshold for small and medium-sized enterprises to receive a 90 percent tax refund will be set at MNT 2.5 billion. For companies with outstanding debts, 20 percent of future incoming revenue in bank accounts will remain unseized. Businesses will also be allowed to defer VAT payments at customs for up to two months, and the deadline for correcting tax reports will be extended by one to two years.

For citizens, VAT paid on purchases of up to MNT 500,000 per month will be refunded in full, 50 percent for purchases between MNT 500,000 and MNT 1 million, and 20 percent for purchases exceeding MNT 1 million. Additionally, 100 percent tax relief will be provided on the monthly income of up to MNT 500,000 for all employed citizens.

The reform will also grant tax deductions of up to MNT 15 million to citizens who purchase their first home in rural areas or buy energy-efficient housing.

Published Date:2026-03-16