Mongolia's parliament has reportedly given final approval to the State Budget Law for 2021, overriding a presidential veto on 25 November. Tax measures of the law include:
Note, a reduced rate of 7% contribution rate was previously provided from 1 October to 31 December 2020, including a 5% rate for social insurance and 2% for health insurance. The standard combined rates are 12.5% to 14.5% for employers and 11.5% for employees, which are expected to be reverted to from 1 July 2021.
Further to the measures above, the Budget Law also includes certain amendments in relation to COVID-19 relief, including for the extension to 31 December 2020 of the corporate income tax exemption for companies with taxable income below MNT 1.5 billion in the previous tax year, which was previously provided from 1 April to 1 October 2020. Amendments are also provided for an income tax exemption from 1 February to 31 December 2020 for companies that reduced rent for their tenants operating in trade and service centers, including supermarkets and malls.