Mongolia

Mongolia has become increasingly reliant on the mining sector with extensive deposits of coal, copper, gold, petroleum, and uranium. The mining sector contributes considerably to Mongolian government revenues mainly through mining royalties and corporate income tax. In 2018, the sector contributed to 23.5% of total government revenues. The Mongolian mining sector scores satisfactory in the Resource Governance Index 2017.

Main Minerals

  • Coal
  • Copper
  • Gold
  • Petroleum
  • Uranium

What Are We Doing in Mongolia?

In August 2019, we agreed to a joint work program with Ministry of Finance (MF), General Department of Taxation (GDT), and the Ministry of Mining and Heavy Industry.

Legal and Policy Support

We have assisted the GDT and MF to draft the mineral pricing provisions of a new transfer pricing regulation; regulation on methods for valuing mining licenses for capital gains tax; and regulations on ring-fencing mining income. These regulations were enacted in January 2020.

Trainings

We have done trainings in Mongolia on valuing exploration and mining licenses for calculating capital gains tax. 

Audit Support

We are contributing industry expertise to Tax Inspectors Without Borders tax audits in the mining sector.