This document is Mongolia's Corporate Income Tax Law. It defines key terms related to corporate income tax such as profits generated in foreign countries, goods, immovable property, intangible assets, and corporate entities. It outlines what types of operation income are subject to tax, including income from primary operations, sale of licenses, securities, gaming, erotic publications, sale of intangible assets, services, interest, damages, foreign currency exchange, and other similar income. It provides details on how to determine taxable income from the sale of minerals licenses and land titles based on the value of shares transferred. It also specifies that tax on incomes determined from minerals licenses and land titles must be withheld by the license or land holder

1. Unofficial translation
LAW OF MONGOLIA
Date: 10 November 2017 Ulaanbaatar city
CORPORATE INCOME TAX LAW
Article 4. Definition
4.1. In this law the following terms shall have the following meaning:
4.1.1. “Profits generated in a foreign country” means profits of a taxpayer generated in a
foreign country from its business, property, and sale of property as set forth in Article 7.3 of this
law;
4.1.2. “Goods” means all movable and immovable property other than monetary assets;
4.1.3. “Immovable property” is as defined in Articles 84.3 and 86.2 of the Civil Code2 ;
4.1.4. “Intangible asset” means any assets intangible in nature having no physical value
that can be of use for a long period giving its owner a right, preferential right, or exclusive right;
4.1.5. “Corporate entity” means a juristic person established in a form of a company,
partnership, cooperative, or a state or locally owned enterprise that is engaged in business
producing revenue, is subject to corporate income tax and registered with the state registry;
4.1.6. “Withholder” means a person that withholds tax imposed on taxpayer’s income as
set forth in this law and pays the same to state and local budget;
4.1.7. “Foreign currency exchange rate gain (loss)” means any exchange rate gain (or
loss) derived from purchase of foreign currency, payment of receivables and payables and other
transactions conducted in foreign currency;
4.1.8. “Ultimate holder” has the meaning as provided by Article 3.1.11 of the Law on
Registration of Legal Entity.
Article 8. Operation income
8.1. Following operation income shall be subject to tax:
8.1.1. Income from primary and auxiliary production, operation and services;
8.1.2. Income from sale of licenses;
8.1.3. Income from sale of share and securities;
8.1.4. Income from gaming and lottery;

2. 8.1.5. Income from sale and rental of erotic publications, books, and video recording and
erotic performance;
8.1.6. Income from goods and services received free of charge;
8.1.7. Income from sale of intangible assets;
8.1.8. Income from technical, management, consulting and other services;
8.1.9. Income from interest, penalty and damages compensated for infringement of
contractual duties;
8.1.10. Income from foreign currency exchange;
8.1.11. Other income alike as set forth in Article 8.1.1-8.1.10 of this law.
8.2. Income from sale of license shall include following income:
8.2.1. any income arising from transfer of any license to carry out certain activities, or
license to hold or use assets by an authorized organization in conformity with the laws and
regulations;
8.2.2. income arising from change of the holder of the right to possess and use land, or of
the ultimate holder of the minerals license by way of transfer of shares or shareholding by a legal
entity and its ultimate holder.
8.3. Income from sale of intangible assets set forth in Article 4.1.4 of this law shall mean revenue
from transfer of ownership in intangible assets in line with laws and regulations.
Article 16. Determining taxable income
16.11. The taxable income stated in Article 8.2 of this Law shall be determined from the value of
the minerals license pro rata to the transferred shares and shareholding of the ultimate holder in
the license holding entity.
16.12. The taxable income stated in Article 8.2 of this Law shall be determined from the value of
the land title pro rata to the transferred shares and shareholding of the ultimate holder in the land
holding entity.
16.13. The income stated in Article 16.12 of this Law shall be determined based on requirements
to the price provided by Article 38.6 of the Land Law and the methodology to define the amount
of tax shall be approved by the member of the Cabinet in charge of finance and budget matters.
16.14. The methodology to define the amount of tax to be imposed on the income stated in
Article 16.11 of this Law, and the methodology to determine the value of minerals license shall
be approved by the member of the Cabinet in charge of finance and budget matters.
Article 21. Tax payment and reporting

3. 21.7. The tax to be imposed on the incomes determined according to Articles 16.11, 16.12, 16.13
and 16.14 shall be withheld, within 7 business days from the closing the deal, by the mineral
license holder or by the entity entitled to possess or use a land and shall be transferred to the
budget.