Mongolia Certified Tax Consultant key terms

The ranked order of Mongolian legal sources, from the Constitution and the General Law on Taxation downward through specific tax laws, then resolutions and procedural rules, with lower instruments void where they contradict higher ones.

The framework statute governing tax liability, registration, assessment, payment, collection, audit, and appeals that applies across taxes unless a specific tax law provides otherwise.

The unique number assigned to individuals and legal entities at tax registration, used on all returns, payments, and official correspondence to link obligations to one registered person.

The mandatory enrollment of a taxpayer with the tax authority, including notification of activity, location, and ownership changes within statutory deadlines, which precedes filing and payment obligations.

The determination of the amount of tax due, either by the taxpayer's self-assessment in a return or by the tax authority through an official assessment when information is missing or understated.

The system in which the taxpayer calculates its own taxable base and tax liability and files a return, with the authority verifying accuracy later through audit rather than computing the amount first.

The process by which the tax authority enforces payment of assessed tax, including demands, bank account seizure, asset attachment, and sale of property when the taxpayer does not pay voluntarily.

The procedure allowing a taxpayer to contest an assessment, penalty, or collection action, typically beginning with review by a higher tax official and then proceeding to court.

A financial sanction imposed for violations such as late filing, understatement of tax, or failure to register, calculated by law as a fixed amount, a percentage of tax, or a daily accrual.

An act or omission breaching tax law that triggers administrative or criminal liability, ranging from late payment to deliberate evasion through false documents or concealed income.

A structured examination by the tax authority of a taxpayer's records, returns, and transactions to verify compliance, which may be desk-based, documentary, or conducted on the taxpayer's premises.

The tax levied on the taxable profit of legal entities, computed as taxable revenue less deductible expenses and losses, with rates and incentives set by the corporate income tax law.

The base for corporate income tax, derived by adjusting accounting profit for items the tax law treats differently, such as non-deductible expenses, exempt income, and carried-forward losses.

A cost that the tax law allows to reduce taxable profit, generally requiring that it be incurred for business purposes, documented, and not listed among non-deductible items.

The systematic allocation of the cost of depreciable assets against taxable profit over time, using categories and rates prescribed by tax law rather than financial reporting estimates.

The right to offset a prior year's tax loss against profits of later years within the statutory period, subject to continuity-of-ownership and documentation conditions.

The tax on income received by individuals, covering employment income, business income, property income, and investment income, with rates and exemptions set by the personal income tax law.

The employer's duty to deduct personal income tax from wages and salaries at the time of payment and remit it to the budget, acting as a withholding agent for the employee.

The test determining whether an individual or entity is taxed on worldwide income or only on Mongolian-source income, commonly based on domicile, residence days, or place of incorporation.

A consumption tax charged on the supply of goods and services and on imports, collected at each stage of the supply chain with credit for input tax already paid.

The VAT paid on purchases that a registered taxpayer may offset against output VAT, provided the purchase relates to taxable activity and is supported by a valid VAT invoice.

The annual turnover level at or above which a business must register for VAT and charge it on supplies, below which simplified or exempt treatment may apply.

The document evidencing a taxable supply, showing the parties, description, and VAT amount, which the buyer needs to claim an input credit and the seller must issue as required.

The rule locating a transaction for VAT purposes, determining which jurisdiction may tax it, especially for cross-border services, digital supplies, and goods transported between countries.

A mechanism under which the recipient of a cross-border supply, rather than the foreign supplier, accounts for VAT, registering and remitting the tax on the purchase.

A tax imposed on specific goods such as alcohol, tobacco, and fuel, usually at rates per unit or percentage of value, collected at production or import and often embedded in the retail price.

A charge levied on imported or exported goods at the border, calculated from customs value and tariff rates, and administered alongside VAT and excise collected at importation.

The declared value of imported goods used as the base for customs duty and import VAT, generally the transaction price adjusted for freight, insurance, and specified additions.

A payment to the state for the right to extract minerals, commonly calculated as a percentage of the value of extracted minerals, with rates varying by mineral type and extraction conditions.

A tax on the extraction of minerals distinct from royalty, based on the quantity or value of minerals extracted, imposed under the minerals and taxation framework.

A charge for the grant of a license or contract to explore or exploit subsoil resources, often payable as a signing bonus, periodic payment, or production share under the license terms.

The charge for the use of land, including land rent and land tax, payable to the local budget by holders and users of land according to location and purpose.

A local tax on ownership of buildings and structures, assessed on the taxable value of the property and payable to the local budget where the property is situated.

A tax on immovable property such as land and attached structures, distinguished from movable asset taxes and often administered locally using cadastral valuation data.

A local tax on the ownership or use of motor vehicles, calculated by reference to engine capacity, vehicle type, or another statutory measure, and paid to the local budget.

A mandatory payment by employers and employees into the social insurance fund, covering pensions, benefits, and health insurance, calculated on wages within statutory limits.

The periodic submission of employee-level data on wages, withheld income tax, and social insurance contributions to the tax and social insurance authorities, usually in electronic form.

The recording of transactions so that tax bases, deductions, and liabilities can be computed and supported, including reconciliations between financial statements and tax returns.

The submission of a prescribed declaration of income, deductions, and tax due by the statutory deadline, whether or not any tax is payable for the period.

Submission of returns and related documents through the tax authority's online system, which generates acknowledgements and supports electronic payment and account reconciliation.

A bilateral treaty allocating taxing rights between two states and providing relief such as exemption, credit, or reduced withholding so that the same income is not taxed twice.

A fixed place of business or dependent agent through which a non-resident carries on business in a country, giving that country the right to tax the attributable business profits.

Tax deducted at source by a payer on specified payments such as interest, dividends, royalties, or fees to non-residents, remitted to the budget on the recipient's behalf.

The setting of prices for transactions between related parties, which must follow the arm's length principle and be documented to prevent shifting profits across borders.

The standard requiring related-party transactions to be priced as they would be between independent parties, supported by comparables or accepted methods such as cost plus or resale price.