Tax Accounting, Reporting, and E-Filing
Scope
Tests tax returns, deadlines, e-filing, record keeping and reconciliation.
Core rules
- Tax returns must be filed electronically through the e-tax system with a digital signature.
- Common deadlines: monthly VAT, PIT and social insurance by the 10th; annual CIT return by 20 February.
- Records must be kept for at least 5 years and support all returns.
- Tax accounting differs from financial accounting: add-backs, depreciation and provisions must be adjusted.
- Amended returns can correct errors but may trigger penalties and interest.
- Proof of filing (receipt/confirmation) should be retained.
Worked example
A company discovers it understated VAT by MNT 1,000,000 in a prior month. It files an amended return, pays the 1,000,000 plus penalty and interest. If it waits until the audit, the penalty may be higher and the correction less credible. Filing proof shows the original return was submitted on time.
Traps
- Filing paper returns when e-filing is mandatory.
- Missing the 10th/20th deadlines.
- Not reconciling VAT returns with accounting ledgers.
- Assuming amended returns avoid penalties.