On January 3, 2020, the Parliament issued a Resolution approving the Convention on Mutual Administrative Assistance in Tax Matters. The Convention on Mutual Administrative Assistance in Tax Matters (“the Convention”) was developed jointly by the OECD and the Council of Europe in 1988 and amended by the Protocol in 2010. The convention is the most comprehensive multilateral instrument available for all forms of tax cooperation to tackle tax evasion and avoidance.

The Parliament defines certain limitations to apply the Convention, including:

According to subparagraph 1 (a) Article 30 of the Convention, Mongolia enjoys the right to not provide any form of assistance in relation to taxes of other parties in any of the categories listed in subparagraph 1 of Article 2, including:

• Taxes on income, profits, capital gains or net wealth which are imposed on behalf of political subdivisions or local authorities of a Party,
• Compulsory social security contributions payable to general government or to social security institutions established under public law
• Taxes in other categories, except customs duties, imposed by one of the Parties, namely:

o Estate, inheritance or gift taxes;

o Taxes on immovable property;

o General consumption taxes, such as value-added or sales taxes;

o Specific taxes on goods and services such as excise tax;

o Taxes on the use or ownership of motor vehicles

o Taxes on the use or ownership of movable property other than motor vehicles;

o Any other taxes.

In addition, the Resolution states that Mongolia enjoys the right not to provide any administrative assistance in relation to the payment of taxes as defined in Article 2.1 of the Convention, resolution of any debts invoiced based on single or several tax meanings or payment of any penalty.

Please click here for the Convention Resolution.