Mongolian requirements

Mongolia operates a “pay as you earn” scheme with personal taxes withheld from salaries and paid directly to the relevant authority by the employer.

  • social & health insurance is also deducted at source and the employer is required to pay a contribution based on the percentage of gross salary
  • some returns are filed quarterly, some monthly and some ad hoc
  • filing methods are paper based, online or a combination
  • in order for your employees to receive state benefits you will need to lodge social and health bookletsat the labour office regularly

How we can help

We will provide a confidential payroll service to enable you to pay your staff on time, while ensuring compliance with the local payroll tax regime. We can do all or some of the below:

  • monthly or twice monthly payroll calculations
  • filing of your social & health insurance and personal income tax returns
  • production and distribution of monthly pay slips
  • upload to bank of all payroll proposals (with online access)
  • management of PIT or SHI inspections

In some circumstances we may also be able to second staff to you in order to cover short term needs.

Points to consider

Please consider the below:

  • payroll and payroll taxes in Mongolia are relatively straightforward, although there remains a certain amount of paper based reporting, which can be time consuming
  • employees have the legal right to request salary payments twice monthly, and this is not uncommon
  • companies are generally responsible for the retention of suppliers’ personal taxes if they are individuals