Pursuant
to Article 43 of the General Taxation Law taxpayers are obliged to
independently determine their taxable income and tax deductions payable in
accordance with the law based on relevant documents, reflect them in their tax
reports and pay either in cash and non-cash forms.
Timeframe
for submission of tax reports and payment of taxes are determined by the laws
of the particular tax type, and deadline for submission of tax reports and payment
of taxes are usually the same. Lets have a look at timeframes for submission of
tax reports and payment of taxes commonly paid by legal entities (companies)
and individuals.
Corporate income tax
A taxpayer must pay the taxes
due in advance by the 25th of
each month, and
submit the
quarterly tax reports by
the 20th of
the first month of the following quarter and annual tax report by February
10th of
the following year to corresponding tax authority and finalize tax year-end
calculations.
Personal income tax
A
tax withholder must pay the taxes deducted (withheld) from
the taxpayer’s income to the relevant budget by the 10th of the following month and submit the quarterly reports
of the withholding taxes by the 20th of the first month of the
following quarter and annual report of the withholding taxes by February 15th
of the following year with ascending sum to corresponding tax authority.
Value added tax
A tax withholder must pay the taxes imposed from sale of
goods, rendering of works
and services in accordance with the laws to consolidated account of state treasury by the 10th of the
following month and submit the tax
reports to corresponding tax authority in accordance with approved forms.
Capital city tax
A tax withholder must pay the taxes imposed from sale of goods and rendering of services by the 10th of the
following month and submit the tax
reports by the 20th
of the first month of the following quarter to corresponding tax authority
in accordance with approved forms.
Tax on automobiles and self moving vehicles
Individuals must pay annual tax
on automobiles and self moving vehicles once
a year to corresponding tax
authority before June 1st of the same year. If an
automobile or self moving vehicle has been imported after June 1st,
taxes payable for the remainder of the year must be paid to corresponding tax
authority within the same year.
In order to implement the law, on January 26th, 2015 by
Resolution No. 28 of the Presidium of the Capital City Council of Citizens’
Representatives was approved “Regulation on re-implementation of vehicle
registration and payment systems in the capital city”. Pursuant to this new
regulation the timeframe for payment of taxes on automobiles and self moving vehicles in the capital city shall depend
on the last digit number of the licence plate (state registration number) of
the automobile or self moving vehicle. In other words, if your vehicle’s
licence plate (state registration number) ends with 1 or 6 – the taxes must be paid
before end of January, if it ends with 2 or 7 – before end of February, if it
ends with 3 or 8 – before end of March, if it ends with 4 or 9 – before end of
April, if it ends with 5 or 0 – before end of May.
Legal
entities must pay annual tax on automobiles and self moving vehicles by the 25th
of the last month of each quarter dividing annual tax into equal amounts and
submit the tax report by February 15th of the
following year to corresponding tax authority.
Land fee and tax on
immovable property
Unless
stated otherwise in the land possession or land use contracts, land fee payers must
pay the land fee by the 25th of the first month of each quarter
dividing the annual land fee into equal amounts; and may pay the next quarter
installments in advance. The authority (or official) in charge of land fee matters
(collection) must submit to the tax authority one copy of the land possession
or land use contract of a citizen or legal entity and a copy of the land fee
report produced at corresponding administrative level.
A
taxpayer must calculate tax on immovable property based on the value of
immovable property as of January 15th of each year. Legal entities
that own immovable property must pay annual tax on immovable property by the 15th
of the last month of each quarter dividing annual tax into equal amounts.
Individuals (citizens of Mongolia, foreign citizens and stateless persons) that
own immovable property must pay annual tax on immovable property once a year by
February 15th of each year. A taxpayer must submit the tax reports
of taxes on immovable property by February 10th of the following year
to corresponding tax authority.
Pursuant
to law if the deadline for submission of tax reports and payment of taxes
coincides with weekends and/or public holidays, the tax reports shall be submitted,
and taxes paid on the previous working day. Due to circumstances that this
year’s Lunar New Year holidays fall on February 5, 6 and 7th, and that
the Government of Mongolia has ruled to transfer the workday of February 8th
to another day and make it a public holiday, tax authority has decided to
extend the legal timeframe for submission of annual tax reports for 2018 for 5
business days, i.e. now taxpayers may submit their annual tax reports by
February 15th.
Pursuant
to Article 45 of the General Taxation Law taxpayers (tax withholders) are
obliged to execute tax reports in accordance with instructions, forms and
within timeframes specified by the law, and submit to corresponding tax authority.
Taxpayers eligible for tax
exemptions and returns in accordance with laws are not be relieved from duty to
submit tax reports. Because the tax reports are the main documents to provide
taxpayers with tax exemptions and returns.
