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 25^th of each month, and submit the quarterly tax reports by the 20^th of the first month of the following quarter and annual tax report by February 10^th 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 20^th of the first month of the following quarter and annual report of the withholding taxes by February 15^th 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 10^th 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 10^th of the following month and submit the tax reports by the 20^th 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 1^st of the same year. If an automobile or self moving vehicle has been imported after June 1^st, 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 26^th, 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 25^th of the last month of each quarter dividing annual tax into equal amounts and submit the tax report by February 15^th 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 25^th 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 15^th of each year. Legal entities that own immovable property must pay annual tax on immovable property by the 15^th 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 15^th of each year. A taxpayer must submit the tax reports of taxes on immovable property by February 10^th 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 7^th, and that the Government of Mongolia has ruled to transfer the workday of February 8^th 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 15^th.

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.