A new amendment to the personal income tax law, which was approved by Mongolia’s State Great Khural (parliament) will come into effect from 1 January, 2018. Currently, the personal income tax rate stands at 10 percent. Under the new amendment, the rate will be increased by between 10-25 percent in 2018.

The changes are as follows: individuals with a monthly salary of between MNT 1.5-2.5 million will pay 15 percent; those earning MNT 2.5-3.5 million will pay 20 percent and those bringing home more than MNT 3.5 million will have to pay 25 percent income tax.

Within the scope of the International Monetary Fund’s (IMF) ‘Extended Fund Facility’, several arrangements need to be completed including changes to the existing tax rates. On 13 April, during its spring session, the State Great Khural adopted amendments to certain tax rates.