05.20.2008, LAW, General Taxation LawAmendments

LAW OF MONGOLIA
May 20, 2008 Ulaanbaatar city
LAW ON GENERAL TAXATION
(As updated by LLX in August 2008)
CHAPTER ONE
General Provisions
Article 1. Purpose of the Law
1.1. The purpose of this Law is to establish legal grounds for introduction, establishment,
imposition, reporting, payment, control and collection of taxes in Mongolia, to define
rights, duties and liabilities of taxpayers and tax authorities and to regulate relations
arising between them.
Article 2. Tax Legislation
2.1. The tax legislation shall comprise of the Constitution of Mongolia, this Law and other
legislative acts enacted in conformity therewith.
2.2. Unless the International treaties of Mongolia stipulate otherwise than tax legislation of
Mongolia, the provisions of international treaties shall prevail.
Article 3. Introduction, Amendment, Exemption and Annulment of Taxes
3.1. The Parliament of Mongolia shall have the sole right to introduce, amend, discount,
exempt and annul taxes by law.
3.2. Relations pertaining to introduction, amendments, exemptions, discounts, imposition and
payment of taxes shall be regulated by the Tax Law only, except for cases stipulated
below:
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3.2.1. Establishment of a special tax regime in a free zone;
3.2.2. Establishment of a regime to maintain current tax conditions in a stability or
investment agreement to be concluded by the Government with investors within
amounts and limitations of the right provided by legislation that are effective at
the time of conclusion of the agreement.
Article 4. Definition of legal terms
4.1. For the purposes of this Law, these terms have the following meaning:
4.1.1. “transferred income” means cashless transfer of payment for work or services
rendered by individuals and legal entities on a contract basis to the individual or entity
itself or to others at their request.
4.1.2. "termination of tax payment liability due to invalidation of law on certain type of
tax" means invalidation of the law on tax of type in question by the Parliament and
completion of the term for tax settlement;
4.1.3. “electronic tax documents” means set of documents developed, stored, sent or
received in an electronic form and certified with digital protection signature in
compliance with tax legislation;
4.1.4. “electronic signature” means a private key of the taxpayer and tax agency created
using a certain algorithm for the purpose of authenticating completeness and accuracy of
electronic tax documents;
4.1.5. “integrated database of tax registration and information” means set of software,
information and data created, collected, received, developed and stored under the
synchronized documents , integrated classification, codes, standards and methodology”.
4.1.6. “tax withholder” means an entity in charge of imposing and withholding taxes on
income earned by taxpayers in compliance with the tax law and obligated to transfer it to
the state or local budget;
4.1.7. “tax report” means a tax report of legal entities and a report sheet of individuals
that defines their income taxes developed electronically or in writing;
4.1.8. “legitimate excuses” shall mean:
4.1.8.a. being sick;
4.1.8.b. undergoing medical treatment;
4.1.8.c. caring for a patient;
4.1.8.d. working on business assignment abroad and locally;
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4.1.8.e. undertaking training;
4.1.8.f. being on public mobilization;
4.1.8.g. to be imprisoned in zone of public quarantine due to serious contagious
disease;
4.1.8.h. sudden fire and natural dangers or force majeure (flood, drought, zud,
dangerous snow and dust storms, earthquake, etc.).
4.1.9. “exerted resistance” shall mean the following actions carried out in relation to
performing official duties of the state tax inspector:
4.1.9.a. hit;
4.1.9.b. kicked;
4.1.9.c. pushed;
4.1.9.a. splashed with any substances;
4.1.9.d. exerted physical resistance;
4.1.9.e. threatened;
4.1.9.f. verbally insulted;
4.1.9.g. frightened;
4.1.9.h. intimidated;
4.1.9.i. and any other deliberate acts of exerting pressure.
CHAPTER TWO
Taxes of Mongolia
Article 5. The Tax composition
5.1. Taxes of Mongolia shall comprise of taxes, fees and payments (hereinafter referred to as
"taxes").
5.2. Tax is monetary capital imposed on income, property, goods, work and services of
individuals and legal entities in accordance with legislation according to certain amounts
and rates established for certain period of time and contributed to the state and local
budget without repayment.
5.3. Taxes shall comprise of direct and indirect taxes.
5.4. Direct taxes shall be established in direct proportion to total income, profit and property
of individuals and legal entities.
5.5. Indirect taxes shall be established on certain types of goods and services regardless of
results of operations of individuals and legal entities.
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5.6. Fees shall mean monetary capital that is paid to state and local budgets for the service
provided by relevant state organizations to individuals and legal entities in conformity
with legislation;
5.7. Payment shall mean monetary capital taken from individuals and legal individuals for use
of the state property, subsoil, mineral wealth, forest, plants, mineral spring and water
resources, pollution of air, water and soil, and animal hunting and concentrated in state
and local budgets, and special funds.
Article 6. Taxable Items
6.1. Taxable items shall include income, property, goods, work, services, certain rights, land,
its sub-soil, natural wealth, mineral resources; and air, soil and water pollution.
Article 7. Tax Types and Classifications
7.1. Taxes shall be classified into tax types and relations pertaining to certain types of taxes
shall be governed by this law and a tax law of the given tax type.
7.2. Certain types of taxes shall pertain to any one of state or local taxes.
7.3. The following taxes, rates of which are established by the Parliament and Government
and commonly enforced on territory of Mongolia shall be classified as state taxes:
7.3.1. economic entities income tax;
7.3.2. customs duty;
7.3.3. value-added tax;
7.3.4. excise tax;
7.3.5. tax on petroleum and diesel fuel;
7.3.6. royalty;
7.3.7. price increase tax on some goods;
7.3.8. fees for mineral exploration and mining licenses.
7.4. The following taxes, rates of which are established by the Parliament, Government, the
Citizens Representative Assembly of province capital city, soum or district to be
concentrated in local budgets or enforced in local areas shall be classified as local taxes:
7.4.1. individual income tax;
7.4.2. income tax of individuals engaged in work and services, income of which cannot
be immediately determined;
7.4.3. immovable property tax;
7.4.4. state stamp duty;
7.4.5. water and spring water charges;
7.4.6. tax on auto and self-propelling vehicles;
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7.4.7. charges on permit to use of natural resources other than minerals;
7.4.8. charges on use of natural plants;
7.4.9. charges on use of commonly occurring minerals;
7.4.10. charges on use of hunting reserves, hunting permit fees;
7.4.11. land charges;
7.4.12. charges on procurement and use of wood fuel and timber from forest;
7.4.13. gun duty;
7.4.14. capital city tax;
7.4.15. tax on dogs;
7.4.16. tax on inheritance and gifts.
Article 8. Establishing Tax Rates
8.1. Tax rates shall be established by the Parliament, or the Government and Citizens
Representative Assembly of province or capital city as authorized by the Parliament in
accordance with legislation.
8.2. The Parliament shall establish rate of taxes other than those specified in 8.3 and 8.4 of
this Law.
8.3. The Government shall establish rates of tax on use of water resources specified in 7.4.5
and rates of taxes specified in 7.4.10-7.4.12 of this law within limits approved by the
Parliament.
8.4. The Citizens Representative Assembly of province and capital city shall establish rate of
tax on use of spring water resources specified in 7.4.5 and rate of tax specified in 7.4.8 of
this law within limits approved by the Parliament.
Article 9. Forms of Providing Tax Discounts and Exemptions
9.1. Taxpayers shall be provided tax discounts or exemptions in the following forms in
accordance with legislation:
9.1.1. reducing taxes imposed;
9.1.2. reducing tax rates;
9.1.3. exempting from taxes on income, property, goods, works and services below
established minimum;
9.1.4. exempting taxpayers from taxes;
9.1.5. exempting from taxes certain parts of taxable items;
9.1.6. other discounts provided by legislation.
Article 10. Termination of Tax Payment Obligation, Transfer Thereof to the Others
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10.1. In the following cases, the obligation of the tax payment is considered to terminate:
10.1.1. The specific tax law is canceled;
10.1.2. The specific tax is fully paid;
10.1.3. The taxpayer is fully exempt from the specific taxes;
10.1.4. The taxpayer had died or is considered to have died;
10.1.5. The taxpayer legal entity has been liquidated.
10.2. Obligation to pay taxes along with any related rights of a taxpayer who had died or is
considered to have died shall transfer to the taxpayer's heir.
10.3. Any unpaid or deficient taxes along with any related rights of a re-organized legal entity
shall be transferred to a legal entity formed as a result of the re-organization. If the
taxpayer legal entity was reorganized by separating, the tax payment obligation shall
transfer to them based on taxable items.
10.4. The liquidation commission in case of liquidation and the claimants committee in case of
a bankruptcy of the legal entity shall ensure payment of unpaid or deficient taxes from
property of the legal entity in accordance with the law and pay to the budget in
accordance with article 7 of this law.
Article 11. Period for Tax Dispute Settlement
11.1. Time for imposition of tax in arrears, fines and penalties shall be five years. The
timeframe for dispute settlement specified in the Civil Code [2]
of Mongolia does not
pertain to tax legislation.
11.2. Dispute settlement timeframe shall not pertain to payment of tax, fine and penalty debts.
11.3. Start of the timeframe for dispute settlement specified in 11.1 of this law shall be
established as follows:
11.3.1. for taxes, reports of which are filed and paid once at the end of the year
according to the tax law, from the following business day of the day when the
tax report must have been filed and taxes paid as specified by the law on the
given type of tax;
11.3.2. for taxes, reports of which are filed and paid on monthly and quarterly basis
according to the tax law, from the following business day of the day when the
tax report must have been filed and taxes paid at the end of December or the
year as specified by the law on the given type of tax;
11.3.3. for taxes paid in deductibles and taxes payable after sales within certain period
of time according to the law, from the following business day of the day when
the tax report for the given tax type must have been filed.
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11.3.4. for taxes payable without issuing a tax report, from the following business day
of the day when the tax must have been paid according to the tax on the given
type of tax.
11.4. The period for tax dispute settlement shall end on the day when the Tax Authority
delivers a notice specified in Article 54 of this Law, and start anew from thereon.
11.5. If the taxpayer ceases his operations or is liquidated, the period for tax dispute settlement
shall start from the day the operations stopped.
11.6. The period for dispute settlement of taxes, fees and penalties uncovered and imposed
during a tax audit shall start on the day the act executed by the state tax inspector came
into force.
CHAPTER THREE
Taxpayer, Rights and Duties Thereof
Article 12. Taxpayer
12.1. Taxpayers shall be individuals and legal entities who assume the obligation to pay taxes
by providing works and services, engaging in employment, earning income, property and
goods taxable by tax legislation, as well as exploiting land, its subsoil, natural wealth and
mineral resources, and polluting air, water and soil.
12.2. Taxpayer individuals and legal entities shall be specifically defined by the law on tax of
the given type.
Article 13. Taxpayer Registration
13.1. Individuals and legal entities who assume the duty of paying taxes and withholding taxes
in accordance with the tax law shall register with tax authority as taxpayers.
13.2. Unless otherwise provided by legislation, a newly established legal entity shall open a file
and register with local tax authority within 14 days as a taxpayer of receiving a certificate
from a registering organization.
13.3. Owner or holder of taxable items other than income shall open a file and register with
local tax authority as a taxpayer within one (1) month of owning or holding this item,
unless otherwise specified by legislation.
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13.4. The tax authority shall assign a registration number to every taxpayer and tax
withholding individual and legal entity, open a file for each and store the following
documents and information in the file:
13.4.1. taxpayer individual’s family name, parents’ names, given name, registration
number, certificate or book number, home address, telephone number;
13.4.2. taxpayer legal entity’s name, address, brief introduction of management
members, pictures, civil identification card numbers;
13.4.3. date the legal entity registered as a taxpayer, field of operations;
13.4.4. certified copy of the report that reflects immovable property evaluation, land
ownership status, amount of fixed and working assets, number of employees;
13.4.5. names and number of investors and branches, their locations, addresses and
telephone numbers;
13.4.6. names and types of taxes payable by the taxpayers, their bank account details;
13.4.7. copies of balance sheets, acts and notices;
13.4.8. requisitions, notices, violations acts, reports and directives of audits conducted
by the tax authority on the taxpayer;
13.5. The taxpayer shall notify the local tax authority within 20 working days of transferring
his ownership right to others by selling or presenting as a gift immovable property;
13.6. Unless otherwise specified by legislation, the taxpayer shall notify the tax authority every
time any changes made to the state registration certificate and his personal file within 20
days and have these changes reflected in the registration and personal file.
13.7. Tax paying and tax withholding entities must reflect their taxpayer registration numbers
assigned by the tax authority in all reports, information, customs declarations, payments
and other necessary documents issued in accordance with the law.
13.8. Failure to be registered as a taxpayer shall not relieve of the duty to impose, pay and
withhold taxes, and liability related thereto.
13.9. Taxpayer registration procedure shall be approved by the National Tax Authority.
Article 14. Respecting Taxpayer Rights and Legal Interests
14.1. The tax authority and state tax inspectors shall respect taxpayers’ rights and legal
interests, and exercise trust when carrying out their plenary rights.
14.2. The tax authority and state tax inspectors shall be prohibited from interfering with
activities of taxpayers except for auditing tax imposition and payment, determining
imposition of taxes, monitoring tax payments and collecting taxes as specified by the law.
14.3. The tax authority, state tax inspectors and other employees of the tax authority shall be
obligated to keep confidentiality of taxpayers’ confidential information defined by the
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Law on Individual Confidentiality[3]
and the Law on Organizational Confidentiality[4]
that
was made available to them when carrying out their official duties. This information may
be made available only to the following civil servants by resolution of the Chief of the
Tax Authority:
14.3.1. state tax inspectors, other employees of the tax authority carrying out their
official duties in accordance with tax legislation;
14.3.2. registrars, investigators, prosecutors and judges who assumed the duty of
inspecting, monitoring and resolving violations of tax legislation, on issues
related to the violation only;
14.3.3. authorized employees of state tax authorities of other countries in accordance
with duties assumed under international treaties of Mongolia.
14.4. Information and facts permitted by law shall be made available based on written consent
of the taxpayer only, in cases other than those specified in 14.3 of this Law.
14.5. The tax authority may publicly publish information about a taxpayer who has been
proven to violate the tax legislation, evade tax payments or is being sought after, without
the permission specified in 14.4 of this Law.
Article 15. Serving Taxpayers
15.1. The tax authority and state tax inspectors shall provide the following services to
taxpayers to assist them with their duty to pay taxes specified by legislation:
15.1.1. to explain and introduce the tax legislation;
15.1.2. to provide with instructions, methodology, handbooks and forms related to
compliance with the tax legislation, defining tax duties and issuing reports and
information;
15.1.3. to organize training on tax legislation, instructions and methodology;
15.1.4. to facilitate conditions for taxpayers, in groups or individually, to obtain advice
on matters related to performing their tax duties, to provide the advice;
15.1.5. to publish articles and organize promotions, trainings and informative programs
targeted for the public via public media outlets and the tax administration
website.
Article 16. Providing Professional Advice to Taxpayers
16.1. Relations of a certified and registered consultant to provide services to taxpayers on
performing their tax duties defined by the legislation and protecting their legal interests
shall be regulated by the law.
Article 17. Taxpayer Rights
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17.1. Taxpayers shall exercise the following rights:
17.1.1. to obtain information and advice related to implementing the tax legislation and
exercising taxpayers’ rights and performing their duties, as well as tax imposition,
payment and reporting procedure, methodology and forms from the tax authority
and state tax inspectors;
17.1.2. to enjoy tax discounts and exemptions as provided by the tax legislation;
17.1.3. to extend period for payment of taxes in accordance with legislation;
17.1.4. to obtain refund or be entitled to deductions on overpaid taxes, to claim late
penalty;
17.1.5. to protect his legal rights and interests personally or through a legal representative
or certified consultant; to be present during tax audits;
17.1.6. to review acts, conclusions and other documents issued by the tax authority, if
considered groundless or illegal, file a complaint in accordance with
administrative and court procedures within 30 days after the review;
17.1.7. to obtain or provide explanations on results of tax imposition, payment,
monitoring and audits;
17.1.8. to demand compliance with tax legislation from the tax administration and state
tax inspectors, to be entitled to compensation for any loss and damage incurred
due to illegal decisions and actions of the tax authority in accordance with
regulations specified by the law;
17.1.9. to file complaints on illegal operations and decisions of the tax authority and tax
inspectors to their direct supervising authority, higher up authority or the court.
Such filing of the complaint shall not relieve the taxpayer from paying taxes, fines
and penalties imposed;
17.1.10.to obtain assistance and advice from legal tax consultants on exercising
taxpayer’s rights and duties as provided by tax legislation;
17.1.11. other rights provided by the legislation.
Article 18. Taxpayer Duties
18.1. The taxpayer shall have the following duties:
18.1.1. to accurately declare his taxable items and pay the taxes on time;
18.1.2. to provide calculations, information and reports related to imposition and
payment of taxes to the tax authority on time;
18.1.3. to conduct bookkeeping and accounting in accordance with established
procedures and accounting standards, and issue reports and statements on
financial and economic activities;
18.1.4. in case of violation of tax legislation, to fulfill requirements imposed by the
tax authority on eliminating the violations;
18.1.5. to sign inspection acts and conclusions of the tax authority in case of
acceptance, if not, to provide an explanation in writing to the tax authority that
carried out the inspection within 10 working days;
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18.1.6. to accurately impose and withhold taxes on labor wages and transferred
income to be provided to others and pay to the budget on time;
18.1.7. to notify the tax authority about acquiring a license to engage in legally
permitted productions and services from a relevant state administrative body
and have it registered within 10 days of obtaining the license in the taxpayer’s
book;
18.1.8. to use a cash register machine that complies with standards of Mongolia;
18.1.9. to provide the tax authority with documents on transfer of taxable property
and rights to others;
18.1.10. to prevent others from using names, addresses, stamps, seals, the state
registration certificate, checking and personal accounts, and signatures thereby
providing opportunity to evade taxes;
18.1.11. to notify the local tax authority each time a license acquired from relevant
authorities is leased or sold to individuals and legal entities;
18.1.12. to notify the tax authority every time a bank account is opened or closed;
18.1.13. to provide financial and other documents necessary for tax audits as requested
by the tax authority and state tax inspectors, to be subjected to tax audits;
18.1.14. other duties as prescribed by the legislation.
CHAPTER FOUR
Mongolian National Tax Administration
Article 19. Structure of the National Tax Administration
19.1. The National Tax Administration shall be comprised of the General Department of
National Taxation, tax agencies and offices of capital city, province, district; and tax
branches of soum and state tax inspectors.
19.2. The General Department of National Taxation may have branch units for state budget
income, control, training, registration and information, and press.
19.3. A Tax dispute settlement council (hereinafter the “dispute settlement council”) authorized
to review and settle disputes arising between taxpayers and the tax authority shall work
under the General Department of National Taxation, capital city and province tax offices.
Operating procedure of the tax dispute settlement council shall be approved by the
Government.
Article 20. Symbol of the tax authority
20.1. The tax authority shall have a symbol. Its design and procedure to use the symbol shall be
approved by the Chief of the General Department of National Taxation.
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Article 21. Rules of the national tax authority
21.1. The Government shall approve the rules of the national tax authority.
Article 22. Course and duties of the national tax authority
22.1. The State Tax Authority shall exercise the following functions:
22.1.1. To ensure implementation of tax legislation, provide taxpayer with information
and advice, organize training and promotions;
22.1.2. To supervise implementation of tax legislation;
22.1.3. To build up tax revenue of state and local budgets.
Article 23. Principle of Work of the National Tax Administration and State Tax Inspectors
23.1. The National Tax Administration and state tax inspectors shall respect the law, rights and
legal interests of taxpayers, avoid being influenced by others. Lower level organizations
shall be under direct governance of higher level organizations.
Article 24. Ensuring principles for the national tax administration and state tax inspectors
to respect the law and avoid being influenced by others
24.1. The national tax administration and state tax inspectors shall avoid being influenced by
others and be governed only by the law and other legislative acts enacted in conformity
with it when exercising their plenary power.
24.2. Individuals, legal entities and officials shall be prohibited from being involved in
operations of and exerting pressure on the tax administration and state tax inspectors
when carrying out their official duties. The tax administration and tax inspectors shall file
a complaint with a relevant organization for settlement on entities that violate this
provision.
24.3. Entities other than those authorized by the law shall be prohibited from making decisions
related to plenary power of the tax administration and state tax inspectors.
24.4. Entities other than those authorized by the law shall be prohibited from assuming
responsibility on issues related to tax imposition, discounts and exemptions.
24.5. Individuals and legal entities shall comply with methodology, instructions and
regulations issues in conformity with the legislation by higher tax authorities in relation
to ensuring complete implementation of the tax legislation nationwide.
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Article 25. Ensuring principles of respecting rights and legal interests of taxpayers
25.1. The tax administration and state tax inspectors shall comply with article 14 of this law
and ensure principles of respecting rights and legal interests of taxpayers.
Article 26. Budget of the national tax administration
26.1. Operations and investment cost of the national tax authority shall be financed from the
budget.
Article 27. Management of Tax Administration and Its Plenary Power
27.1. The National Tax Administration shall have a unified and central management.
27.2. The General Department of National Taxation shall work under supervision of a Cabinet
Member in charge of financial matters, Tax administration and taxation department of
province and capital city under the General Department of National Taxation, and district
tax departments and soum tax inspectors under province and capital city tax
administration and department;
27.3. The national tax authority shall provide operations of all levels of the tax administration
with professional and methodological management and funds, and oversee their
operations.
27.4. The Chief of the province and capital city tax departments shall be appointed and
dismissed by the Chief of the General Department of National Taxation, Chiefs of district
tax departments by the Chief of the capital city tax department based on consensus to be
reached with the Governor of the given level.
27.5. The Chief of the General Department of National Taxation and province, capital city,
district tax departments shall be selected and appointed in accordance with clause 17.1 of
the State Service Law from civil servants who have a financial, economic or accounting
profession, have worked at least three years for the tax department and have a state
inspector’s right.
27.6. The Chief of the General Department of National Taxation shall be the general state tax
inspector and exercise the following plenary rights in addition to plenary rights of state
tax inspectors specified in article 29 of this law:
27.6.1. To provide implementation of plenary power of the National Tax Authority and
state tax inspectors with organizational management and funds, to oversee their
operations;
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27.6.2. To enact regulations, instructions and methodologies for public compliance to
implement this law and other tax legislation, issue recommendations within
scope of rights provided by this law and other tax legislation;
27.6.3. To provide, suspend and void the state tax inspector’s right, to impose
disciplinary fines;
27.6.4. To issue resolutions within scope of plenary power granted by the tax
legislation;
27.6.5. To participate in drafting tax legislation, to develop, present and introduce
proposals on methods, forms and possibilities for the tax department to
implement them to the Government and the Parliament;
27.6.6. To provide proposals on international treaties on preventing tax evasion and
avoiding double taxation on income and property;
27.6.7. To review, amend and void acts, conclusions and other decisions made by state
tax inspectors within scope of law;
27.6.8. To review and confirm, or modify and void decisions made by the Tax dispute
settlement council under the General Department of National Taxation;
27.6.9. To appoint, dismiss, transfer, shift, award and provide incentives to employees
of the national tax administration;
27.6.10. To have the right of disposal of the budget and funds of the national tax
administration.
Article 28. Plenary rights of the State Tax Administration
28.1. The State Tax Administration shall have the following plenary rights:
28.1.1. To organize work to ensure full compliance with the tax legislation on
territory of Mongolia;
28.1.2. To serve taxpayers by providing them with methodologies, instructions,
information and advice to comply with the tax legislation;
28.1.3. To organize work of ensuring whether taxpayers accurately and completely
report their legally payable tax deductions and make timely payments;
28.1.4. To provide tax discounts and exemptions to taxpayers in accordance with the
tax legislation;
28.1.5. To collect independent data on taxpayers, establish a database, and to use it
for tax audits and collection activities;
28.1.6. To impose taxes in accordance with the law on taxpayers whose income and
expenditures are impossible to determine due to failure to maintain
bookkeeping and accounting registers;
28.1.7. To temporarily suspend withdrawals from checking accounts of legal entities
who failed to pay their taxes on time until such taxes are paid;
28.1.8. To carry out tax debt settlements and tax collection activities in accordance
with regulations stipulated in this law;
28.1.9. To roll over overpaid taxes to the next month, quarter, year or refund within
10 days of the payment if the taxpayer requests so;
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28.1.10. To impose legal liability on taxpayers who have evaded payment of taxes,
fines and penalties, failed to provide tax information, reports and other
documents necessary for tax audits on time, and take measures to eliminate
violations detected in the process of tax audits;
28.1.11. To modify or void decisions made by state tax inspectors and lower level tax
administration if considered groundless;
28.1.12. To organize work of preparing tax consultants, provide them with appropriate
rights and work assistance, and cooperate with them, in accordance with the
legislation;
28.1.13. To obtain information, research and other relevant documents necessary to
maintain tax control from individuals and legal entities free of charge;
28.1.14. To provide electronic services;
28.1.15. To carry out electronic audits.
28.2. The tax administration shall file claims with the court on the following issues:
28.2.1. To temporarily suspend economic activities of taxpayers who have repeatedly
and seriously breached the tax legislation until such violations are eliminated;
28.2.2. To sequestrate taxpayers’ income earned by engaging in production and
services prohibited by the law;
28.2.3. To sequestrate taxpayers’ income earned by engaging in production and
services allowed by the law but without holding appropriate permits;
28.2.4. To sequestrate taxpayers’ income earned by engaging in illegal actions or
under invalid contracts and agreements;
28.2.5. Taxpayers who have obstructed performance of duties of state tax inspectors,
made protests, discriminated in relation to their duties, infringed upon their
health and lives and caused damages;
28.2.6. And other issues provided in the legislation.
Article 29. Plenary power of state tax inspectors
29.1. State tax inspectors shall exercise the following plenary powers:
29.1.1.To inspect tax imposition, taxes payable, accounting reports, journals, drafts and
other financial documents, to obtain explanations and clarifications, to
establish violations and write up acts, conclusions and other relative
documents;
29.1.2. To obtain copies of certificates and documents, and bank transaction
statements necessary for tax audits from economic entities, organizations,
individuals and financial organizations that correspond with taxpayers free of
charge;
29.1.3. To temporarily cease, seal documents and property from the taxpayer that
prove concealment of taxable items, to collateralize property for the purpose
of tax debt settlement;
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29.1.4. To access the taxpayer’s warehouse and quarters (regardless of the location)
used to earn income, or where taxable items, accounting and other documents
are maintained that prove the above, to conduct an examination, counting,
take official pictures, and an inspection, if necessary;
29.1.5. Tax withholding individuals and legal entities shall impose and withhold taxes
from labor wages paid to others and transferred income; if such withholdings
were not made and paid to the budget, the deductions shall be paid by the
entity itself from its own funds;
29.1.6. To impose liability specified in articles 74, 75 of this law on taxpayers who
have violated the tax legislation;
29.1.7. To oversee whether taxpayers carry out their accounting and bookkeeping,
issue reports, define their income and taxes and compile documents in
accordance with the legislation; to provide them with professional and
methodological assistance;
29.1.8. To oversee tax imposition and payment procedures, to strictly comply with the
tax legislation of Mongolia and other legislation when collecting taxes;
29.1.9. To strictly adhere to ethics rules of public servants and state tax inspectors;
29.1.10. To collect and pay to the budget taxes, payments, fees, penalties and fines on
times specified by the law;
29.1.11. To oversee implementation of tax audit acts, conclusions and other decisions;
29.1.12. To respect taxpayers’ legal interests, to provide advice and assistance within
the framework of law on tax imposition and payments;
29.1.13. To maintain confidentiality of taxpayers established by the law.
Article 30. Prohibitions of state tax inspectors
30.1. The state tax inspectors shall be prohibited from the following activities besides
prohibitions prescribed to public servants and specified in the Law on Public Service:
30.1.1. To conduct tax audits without a directive and assignment;
30.1.2. To print and use without authorization state tax inspector’s acts, conclusions
and other documents and forms, to use invalid or fake forms;
30.1.3. To prematurely introduce to the taxpayer one’s notes on state tax inspector’s
acts, conclusions, reporting sheets and other documents without finalizing in
an official form, and force the taxpayer into confirming it;
30.1.4. To make changes to or modify acts, conclusions, reporting sheets and other
documents that have been signed and certified;
30.1.5. To distort the principle of respecting the law and avoiding influence of others;
30.1.6. To disrespect rights and legal interests of taxpayers;
30.1.7. To violate ethics rules of state tax inspectors;
30.1.8. To provide information pertinent to confidentiality of the taxpayer acquired in
the process of tax audits to entities other than those specified in article 14 of
this law, to use it for personal purposes:
30.1.9. To conduct examinations and audits without obtaining the state tax inspector’s
right or extending the right in accordance with the proper procedure;
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30.1.10. To neglect to ensure implementation of acts, conclusions and other
documents, to weaken supervision thereof;
30.1.11. To conduct the taxpayers’ accounting, to issue tax and financial statements, to
carry out audits;
30.1.12. To provide opportunities and conditions for taxpayers to evade taxes, to
recommend, persuade, force and demand to violate the legislation;
30.1.13. To fail to register oral and written opinions, requests, complaints and
information submitted by taxpayers in the general and confidential log of the
tax administration’s operations, to examine and resolve proposals, requests,
complaints and information not registered as such;
30.1.14. In case of receiving statements, complaints and information on violation of the
tax legislation, concealing and evading taxes, to conduct examinations or to be
in charge of organizing examinations and audits.
Article 31. Integrated database of tax registration and information
31.1. The national tax authority shall have an integrated database of tax registration and
information.
31.2. The integrated database of tax registration and information shall have the following
purposes:
31.2.1. To oversee tax imposition, payment and collection; to provide with prompt management;
31.2.2. To efficiently organize tax audits;
31.2.3. To ensure full nationwide compliance with the tax legislation;
31.2.4. To ensure openness and transparency of tax administration operations;
31.2.5. To ensure rapid service to taxpayers.
31.3. The tax administration shall have the right to collect independent information necessary
for the integrated tax registration and information database specified in 31.1 of this law in
compliance with the legislation.
Article 32. Procedure for the tax administration and state tax inspectors to collect
information and documents and conduct audits
32.1. The tax administration and state tax inspectors shall adhere to the following procedure
when conducting their operations, defining taxpayers’ tax duties, collecting information
and documents related to tax collection, and conducting examinations and audits:
32.1.1. To present the state tax inspector’s ID, general and specific work directive and the
assignment given by the tax administration to conduct the tax audit, to explain the
purpose of the inspection;
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32.1.2. To execute notes and have them signed in presence of independent witnesses
when temporarily confiscating relevant documents and materials;
32.1.3. To take photographs and make video recording of facts qualifying as
evidence;
32.1.4. To obtain explanations and statements in writing, execute notes when taking
interviews and inquiries, have them signed by relevant entities.
32.2. If technical equipment of others is used to make copies of necessary information and
documents, payment for such use shall be paid based on current market rate or mutually
negotiated price.
32.3. Chief of the unit in charge of the tax administration’s audits shall oversee daily
operations of the state tax inspector conducting the tax audit and provide with
professional and methodological assistance.
Article 33. Documents to be issued by the tax administration and state tax inspectors
33.1. The tax administration and state tax inspectors shall execute statements, acts, demands,
notices, payment forms, conclusions, agreements and operations records (hereinafter the
“records”) when carrying out their duties in relation to overseeing tax imposition,
payment and collection.
33.2. The tax administration and state tax inspectors shall execute the documents specified in
section 33.1 of this law in accordance with the following grounds and procedure. It is the
taxpayers’ duty to fulfill requirements specified in them:
33.2.1. The tax administration and state tax inspectors shall execute a statement when
summoning taxpayers and other entities within plenary power specified in
articles 28, 29 of this law. The statement shall have family name, parents
name and given name and signature of the Chief of the tax administration or
the state tax inspector, deadline to fulfill the requirements and the date of the
statement issuance and delivery;
33.2.2. The tax administration and state tax inspectors shall execute an act when
imposing liability specified in article 74 of this law, sealing property and
determining taxes to be imposed on taxpayers in accordance with the tax
legislation. The act shall have family name, parents name and given name and
signature of the Chief of the tax administration or the state tax inspector, notes
on the violation, grounds for the decision, and the date of the act issuance and
delivery;
33.2.3. The tax administration and state tax inspectors shall execute a demand
statement for the purpose of having causes and conditions that have led to
violation of the tax legislation eliminated. The demand shall have family
name, parents name and given name and signature of the Chief of the tax
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administration or the state tax inspector, notes on the violation, deadline to
eliminate causes and conditions that have led to the violation and to provide a
reply, and the date of the demand issuance and delivery;
33.2.4. A notice shall be executed to have tax deductions paid that were imposed
using an indirect method or that the taxpayer failed to pay on time. If the
notice is to be delivered to the taxpayer, article 54 of this law, and if the notice
is to be delivered to the taxpayer’s corresponding bank, article 63 of this law
shall be complied with respectively when executing the notice.
33.2.5. If a tax debt is to be paid from a salary and other income, a payment form
shall be executed and delivered to the legal entity that provides the income to
the taxpayer. The payment form shall have name of the taxpayer, type and
amount of tax to be paid, the tax administration to receive the tax debt, name
of the bank and account number, name and address of the legal entity to pay
the tax debt in the name of the taxpayer, family name, parents name and given
name and signature of the Chief of the tax administration or the state tax
inspector, address of the taxpayer, amount of the tax debt to be paid, date of
issuance and delivery of the payment form, and deadline to provide a reply;
33.2.6. The tax administration shall execute a conclusion to initiate a criminal case
proceeding against entities that have seriously violated the tax legislation,
concealed significant amount of taxable income or tried to evade payment of
taxes through other actions. The conclusion shall have notes on the violation
that qualify for initiation of a criminal case proceeding, relevant facts, family
name, parents name and given name and signature of the Chief of the tax
administration or the state tax inspector, statement of the entity pertinent to
the case, and the date committing and involved entities were introduced to the
conclusion.
33.2.7. The tax administration and state tax inspectors shall conclude an agreement in
accordance with the Civil Code when taking property owned by the taxpayer
as collateral for the purpose of settling tax debts;
33.2.8. State tax inspectors shall execute notes when conducting audits at taxpayers’
accommodations and warehouses, carrying out counting, taking official
pictures, sealing or taking property as collateral, and obtaining explanations,
statements, inquiries and interviews from taxpayers within their plenary
power. The notes shall have family name, parents name and given name of the
state tax inspector, address of the taxpayer, the date, and signatures of people
who were present when executing the notes.
33.3. Documents specified in article 33.1 of this law shall be deemed delivered to the taxpayer
upon personal delivery or delivering by certified mail to their address of residence or
work. The address of the taxpayer registered with relevant registration organization shall
be his current address.
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Article 34. Grounds for executing acts and conclusions
34.1. State tax inspectors shall execute acts based on grounds specified in articles 47.1, 48.1,
67, 74 of this law and conclusions based on grounds specified in 33.2.6 of this law. The
acts and conclusions shall comprise of recording and establishing parts.
34.2. Acts and conclusions (hereinafter the “acts and conclusions”) executed by state tax
inspectors shall become valid upon signatures of the state tax inspector conducting the
inspection, the taxpayer and signature of the Chief of the department, unit in charge of
the tax administration audits in confirmation of his review.
34.3. If taxpayers refuse to sign acts and conclusions, they shall be deemed valid from the day
they were handed to the taxpayer in accordance with article 18.1.5 of this law regardless
of whether the taxpayer has provided a statement. The state tax inspector shall make a
note on handing the acts and conclusions to the taxpayer.
34.4. The acts and conclusions shall have individual registration numbers.
34.5. State tax inspectors shall execute acts and conclusions in three copies and attach the first
copy to inspection documents, provide second copy to the taxpayer and file the third copy
in taxpayer’s personal file.
Article 35. Ensuring implementation of acts and conclusions
35.1. The tax administration shall oversee and ensure implementation of state tax inspectors’
acts and conclusions.
35.2. The tax administration and state tax inspectors shall file a claim with the court in
accordance with the legislation to have acts and conclusions fulfilled, implementation of
which has become impossible as specified procedure in stipulated in articles 63, 64 of
this law.
35.3. Invalidation of the conclusion specified in 33.2.6 by authorized organizations and
officials shall not become grounds to relieve the entity at fault from administrative
liability.
Article 36. Modifying and invalidating acts and conclusions
36.1. State tax inspectors’ acts and conclusions shall be amended or void based on the
following grounds upon decision of the department Chief in charge of the given tax:
36.1.1. Based on taxpayer’s complaint;
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36.1.2. Chief of the unit in direct supervision of the tax inspector had proposed to
modify or void the act or conclusion executed by the tax inspector;
36.1.3. Based on a decision made by the tax dispute settlement council on amending or
voiding the act or conclusion.
36.2. The Chief of the tax administration may appoint a working group to issue a conclusion
when issuing the decision specified in article 36.1 of this law.
Article 37. Titles of state tax inspectors
37.1. State tax inspectors may be provided the following titles:
37.1.1. Authentic tax advisor;
37.1.2. Certified tax advisor;
37.1.3. Tax advisor.
37.2. The Government member in charge of financial matters shall endorse the procedure for
providing titles to state tax inspectors.
Article 38. Salaries and wages of state tax inspectors
38.1. State tax inspectors shall receive salaries and wages from the state.
38.2. Salaries and wages of state tax inspectors shall comprise of job salary, performance
bonus, and supplements of public service duration, ranks and titles and scientific degrees.
38.3. The amount of performance bonus to be provided on a monthly basis to state tax
inspectors shall not exceed amount of their monthly job salary.
38.4. The Government shall endorse the procedure to provide the performance bonus specified
in article 38.2 of this law.
Article 39. Guarantee of rights of state tax inspectors
39.1. State tax inspectors shall use uniforms and distinguishing badges and their cost shall be
financed by the state budget.
39.2. Chief of the General department of national taxation shall approve the regulations for
design and use of state tax inspectors’ uniforms and badges as well as their service life.
39.3. Other organizations and individuals shall be prohibited from using uniforms and badges
of the same design as the state tax inspectors’.
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39.4. If state tax inspectors suffer from temporary or permanent disability or death caused by
others when performing their official duties, they or their families shall be provided the
following irrevocable assistance and salary balances of the position.
39.4.1. in case of temporary disability, allowance for duration of the hospital stay and
salary balance of the position;
39.4.2. in case of permanent disability, disability allowance and salary balance of the
position;
39.4.3. in case of death, one time assistance equal to three years’ salary of the victim’s
position to his family.
Article 40. Dismissal from tax service
40.1. State tax inspectors shall be dismissed from the tax service based on the following
grounds;
40.1.1. repetitive discipline violations;
40.1.2. serious violation of the legislation and ethical boundaries of the state tax
inspector;
40.1.3. proven to have committed a crime;
40.1.4. abandoned citizenship of Mongolia.
Article 41. Collector
41.1. Tax officers working as apprentices for probation period of one year before obtaining the
right of the state tax inspector shall be called as collectors.
41.2. Collectors shall not have the right to independently conduct tax audits.
Article 42. Dispute settlement council
42.1. The Dispute settlement council shall discuss disputes arising between the tax
administration and taxpayers related to tax inspectors’ tax acts and conclusions based on
taxpayers’ complaints only.
42.2. The Dispute settlement council shall consist of the Chief, secretary and members.
42.3. A Government member in charge of financial matters shall appoint staff of the Dispute
settlement council under the national tax authority to have 11 employees including the
Chief and the secretary; and Chief of the national tax authority shall appoint staff of the
dispute settlement council under province, capital city tax departments to have 7-9
employees.
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42.4. Composition of the tax dispute settlement council shall include representations of state
and local administrative body in charge of tax and legal matters, the tax administration
and non-governmental organizations. Their appointment shall be agreed with
management of their respective organizations.
42.5. The Chief and members of the Dispute settlement council shall be individuals of
accounting, financial, economic and legal professions. At least 60 percent of the staff
shall be trained as state tax inspectors.
42.6. The Dispute settlement council shall convene with at least two thirds of the members
present, and resolve issues based on regular majority voting.
42.7. The Dispute settlement council shall make one of the following decisions: modifying,
invalidating or keeping unchanged acts and conclusions of state tax inspectors. Its
decision shall be in a form of a settlement.
42.8. The settlement of the tax dispute settlement council shall be certified by a resolution of
the Chief of the relevant level tax administration. If the Chief of the tax administration
considers it groundless to certify it, he shall provide a detailed statement specifying the
reason(s) and return along with the resolution to the Dispute settlement council.
42.9. The Dispute settlement council shall consider the statement of the Chief of the tax
administration specified in 42.8 of this law at its meeting and modify the resolution if it
accepts it. If not accepted, the matter shall be presented to the higher level tax
administration for settlement.
42.10. The Dispute settlement council shall have the right to issue recommendations on how to
eliminate causes and conditions of disputes, as well as to prevent violations of the tax
legislation.
CHAPTER FIVE
Tax imposition, payment and reporting
Article 43. Tax imposition, payment and reporting procedure
43.1. Taxpayers shall independently determine their tax deductions payable in accordance with
the law based on relevant documents, reflect them in their tax reports and pay in both
cash and non-cash forms.
43.2. Tax imposition and payment procedure other than specified in 43.1 of this law may be
established by the law of the given tax type.
43.3. Tax reports may be submitted in the form of electronic tax documents and the relevant
procedure shall be approved by the Chief of the National tax authority.
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43.4. Tax reports submitted by taxpayers (including electronic tax reports) shall be received,
registered and resolved in accordance with the procedure of conducting state documents.
43.5. Time to submit tax reports and pay taxes shall be established by the law of the given tax
type. The deadline to report and pay taxes shall be the same.
43.6. If the deadline to report and pay taxes coincides with weekends and public holidays,
taxes shall be reported and paid on the previous working day.
43.7. Entities obligated by the law to impose, deduct and pay taxes to the budget shall not get
paid for fulfilling this duty.
43.8. Taxes not paid on time specified by the tax law, taxes imposed in arrears, late fees and
penalties shall be paid in accordance with the procedure specified in this law and the law
of the given tax type.
43.9. Taxpayers shall pay indirect taxes in advance without waiting for results of the given
operations.
43.10. The law of the given tax type shall be determined when to establish the date of tax
imposition: on the day of invoicing taxable items, the day the invoice was written or the
day it was paid.
Article 44. Compiling, registering and maintaining documents related to taxes
44.1. Taxpayers shall compile documents to determine amount of taxes and taxable items in
compliance with the legislation; legal entities shall maintain accounting and individuals-
regular registration.
44.2. If documents specified in 44.1 of this law are executed in a foreign language, the
taxpayer shall be obligated to submit them translated into Mongolian. The taxpayer shall
be responsible for costs associated with such translation.
44.3. Taxpayers and entities obligated to compile their documents and conduct bookkeeping
shall have the duty to keep such documents and registrations in Mongolia until the tax
payment and settlement time runs out.
Article 45. Executing and submitting tax reports
45.1. Taxpayers shall execute tax reports in accordance with instructions, design and time
specified by the law, and submit to the local tax administration.
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45.2. Taxpayers eligible for tax discounts and exemptions in accordance with the legislation
shall not be relieved from the duty to submit tax reports. The tax reports shall be the main
documents to provide taxpayers with tax discounts and exemptions.
45.3. Tax reports shall be signed by the legal entity’s authorized officials and the taxpayer
himself or his legal representative.
45.4. Entities who have prepared or participated as such in preparation of taxpayers’ tax reports
shall sign the tax reports. If a number of officials participate in issuing the tax report in
accordance with their duty, the tax report shall be signed by the chief accountant.
45.5. Entities who have transferred taxable items to others shall be obligated to provide a
document on such transfer to the entity acquiring the taxable items every time and to the
tax administration whenever requested.
Article 46. Receiving tax reports
46.1. The tax administration shall oversee whether taxpayers are filing their tax reports on time
specified by the law and paying their taxes.
46.2. The tax administration may take measures to supervise registration of, regularize and
stabilize tax report submissions.
46.3. The tax administration and state tax inspectors shall ensure the tax reports submitted by
taxpayers meet the following requirements:
46.3.1. Whether legal entities accurately filed their tax reports based on their
accounting and individuals based on their income and tax registration books;
46.3.2. Whether tax reports are filled in on correct forms in accordance with
instructions without any errors, signed by taxpayers and other relevant entities,
and made official with seals and stamps;
46.3.3. To ensure the date of tax report submission is recorded in the report; if
submitted late, appropriate note shall be made.
46.4. The tax administration and state tax inspectors shall examine the following items when
receiving tax reports:
46.4.1. Whether accounting and tax report data match;
46.4.2. Whether numeric data within the tax report match, whether there are any
calculation errors;
46.4.3. Whether tax discounts and exemptions in the report have been estimated and
reported in accordance with the legislation;
46.4.4. Whether taxes defined in the report have been paid on time;
46.4.5. Whether tax debts and overpaid amounts reflected in the report coincide with
registration of the tax administration;
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46.4.6. Whether there is collateral information related to the tax report of the given
taxpayer in the integrated registration and information database of the tax
administration.
46.5. The following measures shall be taken to eliminate errors detected when receiving tax
reports:
46.5.1. To have the taxpayer correct errors in the tax report, add missing items, make
the report to comply with the law, and correct numeric calculation errors;
46.5.2. To have the taxpayer pay the tax impositions and tax debts defined in the tax
report;
46.5.3. To write a conclusion to conduct a tax audit and introduce to the department
Chief, if it is suspected that the taxpayer has incorrectly reported his tax
deductions, refused to accept requirements of the state tax inspector to correct
the errors detected in relation to estimating one’s tax deductions or failed to
maintain accounting.
CHAPTER SIX
Tax Audits
Article 47. Tax audits
47.1. Taxpayers shall fulfill their duties under the tax legislation of Mongolia by accurately
reporting their payable taxes and paying them on time, which shall be verified by the tax
administration and state tax inspectors.
47.2. The National tax administration shall conduct tax audits.
47.3. The tax administration and state tax inspectors shall carry out the following inspection
activities within their authority in compliance with the purpose of eliminating violations
and assisting taxpayers with exercising of their rights and performance of their duties:
47.3.1. To facilitate conditions for taxpayers to implement the tax legislation by
independently and accurately defining their taxes, to establish whether
taxpayers regularly maintain accounting, issue their tax reports on time and pay
their taxes;
47.3.2. To check whether taxes reported by taxpayers in their tax reports are complete;
47.3.3. If taxpayers fail to maintain proper accounting or fail to file their tax reports, to
define their taxes and have them pay the taxes.
47.4. The tax administration and state tax inspectors shall have the right to inspect taxpayers’
performance of duties whenever deemed necessary in all forms allowed by the law,
compliant with international standards such as planned, unexpected, full, partial,
individual or public, in accordance with requirements to save on tax collection costs, to
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be efficient, to avoid disrupting normal flow of taxpayers’ operations and cause as little
disturbance as possible.
47.5. Unless necessary, a 10 days’ advance notice shall be provided to taxpayers to notify of
tax audits.
47.6. In order to ensure steady tax income flow, Chief of the National tax administration shall
establish jurisdiction of tax audits by amount of income contributed by taxpayers to the
state and local budgets.
47.7. The tax administration shall organize and assign audits in compliance with the purpose of
preventing taking of bribes and conflicts of ethical interests taking into consideration
professional skill level of and work experience of state tax inspectors.
47.8. The procedure to receive, review and resolve applications, complaints and information on
violation of the tax legislation shall be approved and enforced by the Chief of the General
department of National taxation.
Article 48. Indirect method of determining tax imposition
48.1. The tax administration shall apply the following indirect methods of determining tax
deductions of taxpayers if it is established that they have used unreal prices in engaging
in certain operations, failed to properly or fully maintain reports and accounting, or did
not issue any reports:
48.1.1. actual price method;
48.1.2. standard price method.
48.2. The “actual price method” shall mean determining taxes to be imposed using method of
price comparisons and calculation methods that can be utilized under regular market
conditions if prices used in production, trade and financial transactions concluded
between mutually related entities are different from prices used between unrelated
entities.
48.3. If prices, payments and fees (hereinafter the “price”) used in operations such as engaging
in cooperative production, providing technical services, sending human resources,
purchase and sales concluded by taxpayers with mutually related entities abroad and in
Mongolia are higher or lower than actual prices, the actual price method shall be used to
determine tax deductions.
48.4. “Mutually related entities” shall mean entities authorized to directly and indirectly
participate in management, control and property rights of any foreign and Mongolian
legal entities.
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48.5. The “standard price method” shall mean determining taxes to be imposed based on
operations, income, spending and other documents of a taxpayer in local area of capacity
and conditions similar to the taxpayer, if there is not one in local area, then a number of
taxpayers in nearby areas.
48.6. The Government member in charge of financial matters shall approve the methodology of
direct and indirect methods to determine taxes to be imposed.
48.7. The taxpayer shall be obligated to provide materials necessary for determining taxes to be
imposed using the indirect method to the tax administration.
Article 49. Accessing places and warehouses
49.1. State tax inspectors shall access cellars, warehouses, offices and any other quarters used
for production and services, access to which is not prohibited by the law, or used by the
taxpayer to store taxable items, information, research and other documents related to tax,
or used for the purpose of earning income in accordance with provision 29.1.4 of this
law, and document in photographs, carry out audits and counts, temporarily cease
documents and property for review and inspection.
49.2. Activities specified in 49.1 of this law shall be carried out based on official assignment
and directive approved by the chief of the local tax administration which clearly specifies
the places and warehouses to be accessed.
49.3. State tax inspectors shall access places and warehouses upon presenting to the taxpayer
or his legal representative their state tax inspectors’ identification, the directive and the
official assignment of the tax administration to conduct the inspection and count.
49.4. It shall be prohibited to carry out activities specified in 49.1 of this law at foreign
diplomatic missions and consulates, offices of international organizations, and homes of
officials of diplomatic standing.
Article 50. Procedure to conduct audits
50.1. State tax inspectors shall adhere to the following procedure when conducting audits in
accordance with provision 29.1.4 of this law:
50.1.1. To have presence of an independent witness when conducting audits. The independent
witness shall have reached 18 years of age, have full legal capability, free of any private
interests in the activity, and free of any subordinate or superior relations with the
taxpayer, the tax administration or the state tax inspector conducting the inspection;
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50.1.2. To have presence of the owner or his legal representative of the property being
subjected to the inspection, if not possible, a representative of the local
administrative body;
50.1.3. To execute notes on the inspection and have them sign by people who have
participated or witnessed the inspection. If they refuse to sign, to provide an
opportunity to explain and attach the explanation to the notes.
50.2. The tax administration and state tax inspectors shall have the right to conduct inspections
regardless ownership and possession status of the items to be subjected to the inspection.
Article 51. Procedure to conduct counts
51.1. State tax inspectors shall adhere to the following procedure when conducting counts in
accordance with provision 29.1.4 of this law:
51.1.1. To conduct counting of goods, property and cash in the presence of the tax
taxpayer or his legal representative, accountant, or a representative of the local
administrative body, and execute registration and notes of the count;
51.1.2. The registration and notes of the count shall be signed by the state tax inspector
who conducted the count, and people who have witnessed the count. If they
refuse to sign, to provide an opportunity to explain and attach the explanation to
the notes.
Article 52. Procedure to do picture documenting
52.1. State tax inspectors shall adhere to the following procedure when doing picture
documenting in accordance with provision 29.1.4 of this law:
52.1.1. To carry out picture documenting for the purpose of defining taxes payable by
the tax inspector and determining volume and cost of production and services.
Picture documenting shall be carried out with or without notifying the taxpayer
in advance. If an advance notice to carry out picture documenting has been
provided to the taxpayer, to have the taxpayer present during the documentation
and if such notice has not been provided, to have an independent witness
present;
52.1.2. To have professionals participate in the picture documenting and use necessary
measuring devices;
52.1.3. State tax inspectors shall provide a conclusion on the picture documenting and
execute notes. The notes shall be signed by people who have witnessed the
picture documenting. If they refuse to sign, to provide an opportunity to explain
and attach the explanation to the notes.
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CHAPTER SEVEN
Tax Registration and Debt Settlement
Article 53. Tax registration
53.1. The tax administration shall maintain accounting on taxes, fines and penalties in
accordance with the legislation.
53.2. Tax accounting should fully reflect tax deductions, discounts, exemptions, fines, penalties
payable by taxpayers, their payment, collection and debts based on preliminary
documents.
53.3. The tax administration shall register income from taxes, fines and penalties and have a
checking account for the purpose of refunding VAT and overpaid taxes in accordance
with the law.
53.4. The bank shall conduct payment order transactions of the tax administration on refunding
VAT and other overpaid taxes from income accumulated in the checking account of the
tax administration on the given day, and transfer the balance to the state fund account
within the same day.
53.5. The Government member in charge of financial matters shall approve and enforce the
procedure to maintain tax accounting and the tax income registration account.
Article 54. Delivering notices
54.1. Taxpayers shall be delivered notices to pay taxes determined by the tax administration in
accordance with the procedure specified in Article 48 of this law and taxes that the
taxpayer failed to pay on time. The notice shall include the following:
54.1.1. Taxpayer’s family name, parents’ names, given name;
54.1.2. Taxpayers’ registration number;
54.1.3. Date of issuance of the notice;
54.1.4. Taxable items;
54.1.5. Amount of taxes payable;
54.1.6. Requirement to pay the taxes within 10 business days of delivering the notice;
54.1.7. Place to pay the taxes;
54.1.8. Basis for estimating the taxes;
54.1.9. And other requirements deemed necessary by the tax administration.
54.2. In case of possible failure to pay the imposed taxes, the chief of the tax administration
may establish a time period shorter than that specified in 54.1.6 of this law.
Article 55. Tax debts
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55.1. Taxes mentioned below that have not been paid on time specified by the law, fines and
penalties imposed thereon shall be considered as tax debts:
55.1.1. Tax debts reported in the taxpayer’s report, fines imposed on them;
55.1.2. Taxes defined by the tax administration in accordance with article 48 of this
law, penalties and fines imposed thereon;
55.1.3. Taxes established by tax administration audits, fines and penalties imposed
thereon.
Article 56. Order to settle tax debts
56.1. Taxes, fines and penalties (hereinafter the “tax debt”) failed to have been paid on time
specified by the legislation shall be settled in the following order:
56.1.1. Fines imposed on the taxes;
56.1.2. Penalties;
56.1.3. Main tax debt.
56.2. If the taxpayer did not specify exact time period and type of tax being paid with the
current tax payment, the tax administration shall specifically determine order of the tax
debt payment.
Article 57. Deadline to settle tax debts, extending thereof
57.1. The tax administration and state tax inspectors shall establish the deadline to settle tax
debts as follows:
57.1.1. Taxpayers shall settle tax debts imposed in accordance with this law or
incomplete payments within up to 15 days of delivering the imposition act;
57.1.2. Taxes in arrears, fines and penalties imposed thereon detected during audits
within up to 15 days of delivering the act.
57.2. If taxpayers cannot pay their tax debt on time specified in 54.1.6, 54.2, 57.1 of this law
due to valid reasons, the deadline may be extended once up to 60 days based on a written
request of the taxpayer and settlement of the chief of the tax inspector.
57.3. Establishment and extension of the deadline to settle tax debts in accordance with
procedures specified in 57.1 and 57.2 of this law shall not become grounds for dismissing
imposition of tax fines.
Article 58. Tax deductions and refunds
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58.1. In accordance with 17.1.4 of this law, the tax administration shall resolve taxes overpaid
by taxpayers in compliance with the following procedure:
58.1.1. To account for other taxes payable during the same time period;
58.1.2. To keep for taxes payable in the next period, with permission of the taxpayer;
58.1.3. To refund.
58.2. If keeping the overpaid taxes, the tax administration shall notify the taxpayer.
Article 59. Groundless and excess payment of monetary capital due to fault of the tax
administration and state tax inspectors
59.1. The following items shall be considered as capital paid groundlessly and in excess by
taxpayers due to erroneous activities of the tax administration and state tax inspectors:
59.1.1. Total taxes, fines and penalties to be fully or partially refunded due to
invalidation or modification of acts by state tax inspectors;
59.1.2. Total taxes, fines and penalties to be fully or partially refunded due to
invalidation or modification by an authorized organization of tax impositions
defined in accordance with article 48 of this law;
59.1.3. Monetary capital paid groundlessly and in excess based on other decisions of
the tax administration and state tax inspectors.
59.2. The tax administration shall refund capital paid groundlessly and in excess by taxpayers
within 10 days of issuance of decisions specified in 59.1.1-59.1.3.
59.3. The capital specified in 59.1 of this law may be resolved in accordance with the
procedure specified in article 58 of this law with permission of the taxpayer. This step
shall not relieve the taxpayer from being imposed fines.
Article 60. Procedure to establish amount of fines and determine period thereof
60.1. Fines shall be imposed on taxes paid groundlessly and in excess by taxpayers due to
faults of the tax administration and state tax inspectors as well as taxes that were not paid
on time specified by the law.
60.2. The Government shall establish every year the amount of fines specified in 60.1 of this
law based on average loan interest rate provided by commercial banks of Mongolia.
60.3. Time period to impose fines shall be established as follows:
60.3.1. The tax fine shall be imposed by number of days starting from the day specified
in 43.5 and 43.6 of this law or the day when the taxpayer was supposed to
independently define and pay his taxes until the day it is paid;
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60.3.2. Time to impose a fine on monetary capital collected groundlessly and in excess
from taxpayers shall be established by number of days starting from the day
such capital was taken out of the taxpayer’s account due to erroneous decisions
of the tax administration and state tax inspectors until the day it is refunded or
deducted for tax debts.
60.4. Fines shall not be imposed on tax fines and penalties.
60.5. State tax inspectors shall resolve issues related to imposition of fines and refunds and
execute acts as specified in articles 43 and 59 of this law. Such acts may be executed in
conjunction with acts to impose penalties and payment of taxes in arrears specified in
74.1 and 74.2 of this law.
CHAPTER EIGHT
Collecting tax debt not paid on time
Article 61. Tax debt not paid on time
61.1. Tax debt established and extended in accordance with the procedure specified in 54.1.6,
54.2, 57.1 of this law, not paid within the extended time shall be called tax debts not paid
on time.
61.2. The tax administration shall collect and settle tax debts not paid on time.
Article 62. Collecting tax debts not paid on time
62.1. The tax administration shall carry out collection of tax debts not paid on time in the
following order:
62.1.1. To have tax debts paid in a non-dispute manner;
62.1.2. To have tax debts paid from property, salary and other income;
62.1.3. To file a claim with the court.
62.2. In order to fully receive tax debts payable by taxpayers, activities specified in 62.1 of this
law may be repeated.
Article 63. Payment of tax debts in a non-dispute manner
63.1. Tax debts shall be initially settled in a non-dispute manner from monetary capital located
in bank accounts of taxpayers. If the monetary capital in bank accounts of taxpayers is
not sufficient to cover the tax debts, all expense transactions of the account except for
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court ordered expense transactions shall be fully or partially stopped, and the tax debt
shall be settled from the account income.
63.2. Notice of the state tax inspector on settlement of the tax debt in accordance with 63.1 of
this law shall be approved by the chief of the tax administration and delivered to the
bank. The notice shall specify grounds for settlement of the tax debt, its amount and
duration for which expense transactions are to be fully or partially stopped.
Article 64. Settlement of tax debts from taxpayers’ property, salary and other income
64.1. Tax debt not paid within time specified in 57.2 of this law shall be settled from
taxpayer’s property, salary, payables from others, dividends, shares held and other
sources of income.
64.2. The tax administration shall make a decision to have tax debts settled in accordance with
64.1 of this law.
64.3. When settling tax debts from taxpayers’ property, an agreement on collateral shall be
concluded with the taxpayer in accordance with article 69 of this law. Certain property of
the taxpayer shall be held as collateral or based on an agreement with the taxpayer, sold
by publicly announcing under certain terms and conditions, and contribute the
proceedings to the state budget.
Article 65. Procedure to settle tax debts from taxpayers’ salary and other income
65.1. The following procedure shall be adhered to when settling tax debts from taxpayers’
salary and other income in accordance with article 64 of this law:
65.1.1. To deliver a payment notice to a legal entity or individuals that provide income
to the taxpayer to have the tax debts settled from his property, salary, payables
from others, dividends, shares held and other sources of income;
65.1.2. As soon as the legal entity receives the payment notice, it shall make
appropriate deductions from the taxpayer’s income every month, and transfer
the money to the account specified in the payment notice within business 3 days
of making the deduction;
65.1.3. Tax debts shall be deducted before any other debts and payments except for
court-ordered account deductions;
65.1.4. If the taxpayer is dismissed, the legal entity shall record total amount of money
deducted for the tax debt and where the employee has transferred within 7 days
of the dismissal and return the payment notice to the tax administration.
65.2. If the tax debt is to be settled from shares, procedures specified in Article 25 of the
Company Law and article 66 of this law shall be adhered to.
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Article 66. Procedure for settling tax debts from taxpayers’ property
66.1. A working group shall be appointed by decision of the chief of the tax administration
when settling tax debts from taxpayers’ property in accordance with article 64 of this law.
66.2. The working group specified in 66.1 of this law shall carry out the tax settlement
activities in accordance with the following procedure:
66.2.1. Establish initial price of the property provided to settle the tax debt for an
auction taking into consideration its quality, demand, wear and tear, opinion of
the taxpayer and current local rates, and execute notes. The registration of the
asset shall be attached to the notes;
66.2.2. Property provided to settle tax debts shall be sold through an auction. If the
taxpayer wishes so, he or his legal representative may be present during the
auction;
66.2.3. Property not sold during an auction shall be returned to the taxpayer.
66.3. If proceedings earned from the sale of the property through an auction exceed the tax
debt and auction costs, the excess amount shall be provided to the taxpayer, and a note
executed.
66.2.5. If proceedings earned from the sale of the property through an auction are not sufficient
to cover the tax debt, the taxpayer shall not be relieved from the duty to pay the balance.
66.4. Assistance of professional organizations and experts may be obtained in establishing
initial price of the property for an auction.
Article 67. Property sequestration
67.1. State tax inspectors may sequestrate items, monetary capital, documents,
accommodation, warehouses (hereinafter the “property”) of taxpayers who have tax debts
for the following grounds and duration based on directive of the chief of the tax
administration:
67.1.1. Until tax audits, counting, inspections and picture documenting are completed
and relevant conclusions and decisions issued;
67.1.2. If there is information that the property may be concealed or transferred to
others, until such information is checked;
67.1.3. If it is necessary to protect documents, registration, false or invalid agreements,
treaties, and property when filing a claim in accordance with this law, until such
claim is filed with the court.
67.2. If the time specified in 67.1.1 and 67.1.2 of this law runs out, the tax administration shall
revoke sequestration of the property and execute an act.
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67.3 In accordance with 67.1 of this law, the decision of the Chief of tax administration is not
accepted by the tax payer, he is entitled to file claim with the court.
Article 68. Procedure to sequestrate property
68.1. The state tax inspector appointed to conduct counting, inspections and audits or who is
certified to file claims with the court shall carry out sequestration of the property in
accordance with the following procedure:
68.1.1. The taxpayer or his legal representative, accountant or representative of the
local administrative organization and an independent witness shall be present
during sequestration of the property;
68.1.2. The state tax inspector shall execute an act and notes on the property
sequestration. The notes shall specify shape, size, quality, number, color and
other features of the property. The act shall specify grounds and duration of the
property sequestration;
68.1.3. The sequestrated property shall be sealed and handed to the owner.
68.2. Entities specified in 68.1.1 of this law shall assume the duty to confirm the entire process
of the property sequestration and sign the notes. If they refuse to sign, to provide an
opportunity to explain and attach the explanation to the notes.
68.3. The owner in charge of the property sequestrated in accordance with 68.1.3 of this law,
shall assume the duty to keep it complete and shall be prohibited from transferring, losing
or selling the sealed property to others as well as tampering with the lock or seal without
permission of the tax administration. If the owner fails to perform his duty, the state tax
inspector shall explain about imposing responsibility in accordance with relevant
legislation, reflect it in the notes and have it signed by the owner.
Article 69. Grounds and procedure for holding property as collateral
69.1. The following procedure shall be adhered when settling tax debts holding taxpayers’
property as collateral in accordance with 64.3 of this law:
69.1.1. The property taken as collateral for the tax debt shall be private property of the
given taxpayer;
69.1.2. When taking property as collateral, an agreement shall be concluded with the
taxpayer, which will specify quality, price, shape, color, size, location and
ownership of the property and where and whose possession it is to remain
under. If immovable property is taken as collateral, the immovable property
shall be registered with the Immovable Property Registration Office;
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69.1.3. Term of the collateral agreement shall be agreed by the parties to the agreement;
69.2. If the taxpayer settles his tax debts within the time specified in the agreement, he shall
have the right to take back his property held as collateral.
69.3. The taxpayer shall be prohibited from using, disposing of, damaging and losing the
property held as collateral. The taxpayer himself shall assume the liability for any
damages due to violation of this duty.
69.4. The following property of the taxpayer shall be prohibited from being sequestrated or
held as collateral:
69.4.1. Items and clothes (seasonal) used everyday by the taxpayer and his family
members;
69.4.2. Easily perishable food products that cannot be stored for long;
69.4.3. Old, worn-out, useless items;
69.4.4. Accommodation where the taxpayer permanently resides, firewood and coal
used in cold season.
69.5. The procedure specified in article 66 of this law shall be adhered to when selling property
held as collateral.
Article 70. Filing court claims
70.1. The tax administration shall file a claim with the court if it is impossible to settle the tax
debts not paid on time in accordance with the procedure specified in articles 63, 64 of this
law.
70.2. Although an agreement was reached in accordance with the procedure specified in article
64 of this law to have the tax debts settled from property, salary and other income, but the
taxpayer refused to fulfill this duty or delayed without any valid reasons, relevant
property shall be sequestrated in accordance with the procedure specified in article 67 of
this law, and a court claim filed.
CHAPTER NINE
Duties of other organizations
Article 71. Duties of banks, financial institutions and other relevant organizations
71.1. The following duties shall be assumed by organizations specified below in regard to
implementation of tax legislation.
71.2. Commercial banks and non-banking financial organizations:
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71.2.1. Correspondents shall transfer tax payments of taxpayers to the bank specified by
the tax administration within 12 hours. The bank that has received the payment
shall transfer it to the state fund via checking account of the tax administration
within the same day, or the following day if business hours had closed, in
accordance with the procedure specified in article 53 of this law.
71.2.2. The corresponding bank shall notify the tax administration within 10 business
days of taxpayers’ newly opened accounts or any changes and movements made
to old accounts in accordance with the procedure specified in article 12 of the
Law on Monetary Savings, Payments and Loan Activities of Banks and
Authorized Legal Entities;
71.2.3. To execute debts of correspondents in the following order:
71.2.3.a. debts specified by the law to be paid before any other debts;
71.2.3.b. debts specified in settlement of the tax administration on payment
of taxes in non-dispute manner or in accordance with the
taxpayers’ request to pay from monetary capital in their accounts;
71.2.3.c. debts payable to banks, financial organizations and other
borrowers and claimants.
71.3. If banks fail to fulfill their duty specified in 71.2.1 of this law, the tax administration shall
impose 0.3 percent interest per day on unpaid balance of the tax payment.
71.4. Section 2 of article 17 of the Law on Monetary Savings, Payments and Loan Activities of
Banks and Authorized Legal Entities shall not pertain to provision 71.2.3 of this law;
71.5. Stock Exchange:
71.5.1. To provide quarterly information to the tax administration on spread of
shareholders of stock companies in an electronic format.
71.6. Police Department:
71.6.1. to provide necessary assistance and facilitate conditions and opportunities for
the tax administration and state tax inspectors to fulfill their plenary power if
accessing taxpayers’ quarters, warehouses, conducting inspections, counting,
examinations, taking property as collateral and sequestrating property are
opposed with force, obstructed or protested in an organized manner;
71.6.2. to provide information and studies in its possession that do not pertain to
individual privacy but are related to registering citizens of Mongolia, foreign
citizens and stateless individuals as taxpayers and determining addresses thereof
to the tax administration based on its request;
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71.6.3. to cooperate and provide assistance in investigating taxpayers who have evaded
taxes and absconded.
71.6.4. Case registration and investigative organizations and officials shall resolve tax
cases and violations submitted by the tax administration for inspection within
the time specified by law and provide a response to the tax administration in
writing. To provide information on violations of the tax legislation discovered
in the process of performing their official duties to the tax administration.
71.7. Customs Organizations:
71.7.1. to require taxpayers to provide their registration number on customs
declarations and provide information related to export and import activities of
the taxpayer within time period agreed with the tax administration.
71.8. The state administrative organization in charge of civil registration and information, as
well as matters of foreign citizens and stateless individuals, shall provide information and
studies in its possession that do not pertain to individual privacy but are related to
registering citizens of Mongolia, foreign citizens and stateless individuals as taxpayers
and determining addresses thereof to the tax administration based on its request;
71.9. Other state central and local administrative organizations, their management and
officials:
71.9.1. To provide support and assistance in facilitating conditions and opportunities to
promote social and economic benefits of taxes and ensuring implementation of
tax legislation;
71.9.2. To promote benefits of budget spending financed by tax income based on
individual sector and organization examples, to report in an acceptable form;
71.9.3. To provide assistance in tax auditing activities, provide necessary information
and cooperate with the tax administration.
71.9.4. If state administrative organizations and officials in charge of inspections come
upon information on violations of the tax legislation in the process of
performing their official duties, they shall officially transfer this information to
the tax administration.
Article 72. Resolving taxpayers’ complaints
72.1. Taxpayers shall have the right to file complaints in an administrative procedure in regard
to decisions issued by the tax administration and state tax inspectors in the following
hierarchy:
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72.1.1. complaints related to decisions of state tax inspectors to the chief of the tax
administration in direct supervision of the given inspector within time specified
in 17.1.6 of this law.
72.1.2. complaints related to decisions of the tax administration to the chief of the
higher up tax administration;
72.1.3. complaints related to decisions of state tax inspectors to the Dispute settlement
council under the tax administration in direct supervision of the given inspector;
72.1.4. disputes related to decisions of the Dispute settlement council to the Dispute
settlement council of the higher up tax administration.
72.2. Taxpayers shall have the right to file their complaints with the court if decisions made in
accordance with 72.1.2, 72.1.4 of this law are unacceptable.
72.3. The tax administration and the Dispute settlement council shall be governed by this law,
the Law on Administrative Liability, the Law on Administrative Procedure, the Law on
Resolving appeals and complaints submitted by citizens on civil organizations and
servants and the procedure of the Dispute settlement council when resolving complaints
filed in accordance with 72.1 of this law.
Article 73. Liability to be imposed on state tax inspectors
73.1. State tax inspectors who have failed to perform their official duties or abused their
authority specified in articles 29, 30 of this law shall be imposed disciplinary,
administrative, property and criminal liability as specified in this law and other relevant
legislation.
73.2. The following disciplinary actions shall be taken against state tax inspectors in case of
authority abuse, failure to properly perform their duties and violation of prohibitions
specified in this law if criminal charges are not imposable:
73.2.1. To issue a warning;
73.2.2. To reduce monthly salary up to 20 percent for up to 6 months;
73.2.3. To reduce employment position or tax administration ranking;
73.2.4. To rid of the right of the state tax inspector for up to 12 months or permanently;
73.2.5. To dismiss from the national tax authority.
73.3. It is not obligatory to take measures specified in 73.2 of this article separately. Actions
specified in 73.2.3, 73.2.5 of this article may be imposed in conjunction with action
specified in 73.2.4, or repeat the action in 73.2.3 taking into consideration conditions of
the violation.
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Article 74. Liability to be imposed on violators of legislation
74.1. If taxpayers who have concealed taxable income and items other than income, are not
imposable criminal charges based on the following actions, the tax administration and
state tax inspectors shall have the taxes payable paid and impose penalty equal to 30
percent of taxes payable:
74.1.1. physically concealed;
74.1.2. transferred to individuals and legal entities without valid reasons;
74.1.3. left out of accounting reports, balances and tax reports;
74.1.4. quantity, volume and prices of which were decreased in accounting reports,
balances and tax reports, or increased costs and other items to be deducted in
order to decrease;
74.1.5. destroyed, concealed or lost accounting, bookkeeping documents, tax reports
and other relevant documents;
74.1.6. executed false documents, or modified them;
74.1.7. made it impossible to issue tax reports due to failure to maintain accounting and
compile necessary documents;
74.1.8. deceived or concluded false agreements and treaties;
74.1.9. created false payables;
74.1.10. transferred or let others use the legal entity’s name, address, seal, stamp,
accounts, state registration certificate, permits, and other property and
documents.
74.2. If taxes are not paid on time, to impose 0.1 percent penalty per day on outstanding
balance of taxes payable.
74.3. Fines shall be imposed on taxes in arrears and taxes not paid on time in accordance with
74.1 and 74.2 of this law. Amount of the fine shall not exceed 50 percent of the
outstanding tax amount.
74.4. Fines specified in articles 74, 75 of this law shall not pertain to penalty specified in article
232 of the Civil Code of Mongolia.
Article 75. Administrative liability to be imposed on violators of tax legislation
75.1. The tax administration and state tax inspectors shall impose the following administrative
liability on violators of tax legislation:
75.1.1. in case of violation of the procedure specified in section 13.1-13.3 of this law,
individuals shall be fined the minimum labor wage or increased by 2-3 times,
officials shall be fined 3-4 times the minimum labor wage;
75.1.2. in case of violation of the procedure specified in section 13.5-13.7 of this law,
individuals shall be fined the minimum labor wage or doubled; officials shall be
fined 2-3 times the minimum labor wage;
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75.1.3. taxpayer individuals who have failed to issue tax reports specified in tax
legislation to the tax administration on time specified by the law shall be fined
the minimum labor wage or increased by 2-3 times, officials shall be fined 3-4
times the minimum labor wage;
75.1.4. individuals who have evaded payment of taxes, fines and penalties through the
following actions shall be fined the minimum labor wage or increased by 2-3
times, officials shall be fined 3-4 times the minimum labor wage:
75.1.4.a. Incorrectly reported the address at which the economic operations
are carried out or of permanent or temporary residence;
75.1.4.b. Repetitiously failed to appear at the tax administration’s summons
without valid reasons;
75.1.4.c. Failed to reporting one’s address of residence when the court has
not declared the taxpayer missing.
75.1.5. Individuals shall be fined the minimum labor wage or increased by 2-3 times,
officials shall be fined 2-4 times the minimum labor wage, and economic
entities shall be fined 10-15 times the minimum labor wage for losing, wantonly
transferring to others, damaging or selling without permission the property
sealed or taken as collateral by state tax inspectors; capital equal to amount of
the above property that has been lost, transferred to others, damaged or sold
shall be made state income;
75.1.6. Individuals shall be fined the minimum labor wage or increased by 2-3 times,
officials shall be fined 3-4 times the minimum labor wage for impeding with
performance of official duties of state tax inspectors through the following
actions:
75.1.6.a. Failed to provide necessary accounting reports and statements, tax
information and other relevant documents;
75.1.6.b. Did not provide access to accommodation and warehouses;
75.1.6.c. Did not allow performing counting;
75.1.6.d. Did not allow carrying out picture recording, inspections and
property sealing and collateralizing processes;
75.1.6.e. Failed to fulfill requirements specified in statements, acts, notices,
payment notices and demands on implementing the tax legislation;
75.1.7. To fine relevant officials who have violated procedures specified in 24.5,
65.1.4, 71.2, 71.5, 71.6.2, 71.6.4, 71.7 of this law with the minimum labor wage
or increased by 2-3 times;
75.1.8. To fine individuals with the minimum labor wage or doubled, officials shall be
fined 3-4 times the minimum labor wage for violation of duties specified in
Article 44 of this law.
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Article 76. Law coming into force
76.1. This law shall come into force on July 1, 2008.
THE SPEAKER OF PARLIAMENT D.LUNDEEJANTSAN
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