Selected changes to review
1. Corporate income tax rate brackets
For taxable income determined under the relevant CIT Law provisions, the amended rate structure is:
- up to MNT 6 billion: 10%;
- over MNT 6 billion up to MNT 10 billion: MNT 600 million plus 15% on the amount exceeding MNT 6 billion;
- over MNT 10 billion: MNT 1.2 billion plus 25% on the amount exceeding MNT 10 billion.
2. 90% tax relief threshold
The threshold referenced in Article 22.1 of the CIT Law is increased from MNT 1.5 billion to MNT 2.5 billion. Companies should confirm whether they satisfy all conditions for the relief, rather than relying only on the threshold amount.
3. Selected IT equipment depreciation
The amendment adds a 3-year depreciation period for servers, data storage and processing equipment, and computing equipment with graphics or special-purpose processors.
4. Selected IT production income relief
The law adds a relief provision for tax on income from activities of legal entities referred to in Article 11.1 of the Law on Supporting Information Technology Production. Applicability should be reviewed against the specific law, registration and operating conditions.
5. Reporting and payment deadline changes
The amendment changes several CIT reporting and payment deadlines, including replacements of certain prior dates with month-end or updated dates. Companies should re-check the exact deadlines applicable to their filing status and tax type before the 2027 reporting cycle.
Practical relevance for foreign-invested and group companies
Foreign-invested companies and groups with multiple Mongolian subsidiaries should review whether the 2027 changes affect tax budgeting, entity-level rate calculations, relief eligibility, depreciation schedules, reporting deadlines and management reporting assumptions.
Companies in mining, energy, infrastructure, technology or project-company structures should also consider whether the changes affect current tax provision models, financial forecasts, accounting handover files or tax due diligence findings.
Recommended next step
Before the 2027 effective date, management teams should map each Mongolian entity against the amended provisions, review whether any relief or depreciation provision may apply, and update internal filing calendars.
Discuss how this may affect your Mongolian entities
PATC Ledger can support practical review of Mongolian tax changes, reporting deadlines and documentation needs for foreign-invested and group companies.
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