(2022.12.15-ны өдрийн орчуулгын хяналт)                                     Unofficial translation

LAW OF MONGOLIA

April 24, 1997          Ulaanbaatar

ON LAND FEES

Article 1.Purpose of this law

The purpose of this law is to regulate the relations arising from charging citizens, business entities, and organizations with fees for possessing and/or using state-owned land, and paying the fees to the state budget.

Article 2.Legislation on land fees

The legislation on land fees shall consist of the Land Law, General Law on Taxation, this Law and other legislative acts issued in conformity with these laws.

Article 3.Land fee payer

Mongolian citizens, business entities, or organizations possessing or using land based on the decision for land possession and use in accordance with legislation, and foreign diplomatic missions and consular offices, representative agencies of international organizations, foreign legal entities and citizens, and stateless persons that use land shall be land fee payers.

/This Article was amended by the law as of November 13, 2019/

Article 4.Land subject to be charged fees

Fees shall be charged for land falling under the main classification of the unified land territory specified in the Article 10 of the Land law and special usage land and for land possessed or used by citizens, business entities, or organizations according to decision made by competent authority, which have power to decide to let someone possess or use land.

/This Article was amended by the law as of November 13, 2019/

Article 5.Fair value of land and principle to set it

1.The fair value of land shall be set by the Government.

2.The following principles shall be followed in setting the fair value of land:

1/for the land value of cities, villages, and other settled places shall be set considering their rank, location, engineering facilities, social, economic, engineering, geological and environmental conditions and their utilization purpose;

2/for the rates of land except those referred in 1st of this paragraph shall be set differently for each zone considering their purpose of use, geographical location, and as well as distinctive income caused by the land fertility and yield.

3.Rating zones, which divide unified land territories by their integrated natural and territorial conditions and the land value ratings of cities, villages, and other settled places shall be set by the Government.

Article 6.Indicators used in estimating land fees and determining the indicators

1.The units of indicators used to set land fees shall be determined as follows:

1/the land fees possessed or used for the purpose of pastureland is to be estimated per head of livestock animal converted to sheep head equivalent by a percentage of the fair value of the unit square of that pastureland;

2/to be charged for each km of land under roads or networks specified in the Article 13 of the Land law;

3/For land other than those specified in 1 and 2 of this paragraph, to be charged at a percentage of the fair value of one hectare land.

2.In order to impose pastureland fees of the number of livestock heads converted into sheep heads, the number of horses counted at the end of the previous year shall be multiplied by quotient as 6.0, cattle by 6.0, camels by 5.0, and goats by 0.9 in each.

3.Land fees set for the fair value of possessed and used land in cities, villages and other settled places maybe increased or decreased by quotient concerning their engineering supplies, purpose of use, location, environmental impact, and the needs to protect the green zone within the ranges specified in 3 of the 1st paragraph 1 of the Article 7 of this law. The boundary and frontier of land in which quotient to be applied and the quotient quantity shall be determined by the Citizens' representatives khural of province and capital city.

/This paragraph was amended by the law as of July 7, 2021/

4.Land fees shall be estimated according to the overall land area granted into possession and/or utilization.

5.In order to determine fees for land allocated to foreign diplomatic missions and consular offices, if it is considered necessary the principle of reciprocity with that country shall be followed.

Article 7.Rate and percentage of land fees

1.Land fees shall be determined by the indicators stated in the Article 6 of this law as rate and percentage of fair value of land within the following range:

1/range of pastureland fees to be imposed per head of sheep shall be 0,01-0,03 percent;

2/range of land fees for per hectare possessed and/or used land allocated for cultivation and haymaking shall be 0,01-0,03 percent;

3/range of land fees for per hectare possessed and/or used land in cities, villages, and other settled places shall be 0,1-1,0 percent;

4/the minimum land fees for per km land of roads and networks shall be 1500 Togrogs, and the maximum shall be 7500 Togrogs;

5/range of land fees other than stated from 1 to 4 in this paragraph shall be 0.01-0.03 percent.

2.The amount of land fees shall be determined by the Government, within the ranges specified in paragraph 1 of this Article, for each agricultural land zone and land rate of city, village, and other settled places considering land value and its utilization purpose.

3.The fees of land under agricultural buildings and facilities shall be estimated reducing two times the land fee of the nearest city, village, and other settled places in the land.

4.The land fees for citizens, business entities and organizations operating in accordance with respective legislation and agreement in the land of mine exploitation area shall be estimated increasing two times that including to the nearest city zone of country or aimag level.

/This paragraph was modified by the law as of May 2, 2019/

5.The land fees for citizens, business entities and organizations operating in accordance with respective legislation and agreement in the land of forest or water reservoirs shall be estimated increasing two times that of the nearest city zone of country or aimag level.

/This paragraph was modified by the law as of May 2, 2019/

6.The land fees for citizens, business entities and organizations operating in accordance with respective legislation and agreement in the territory of specially protected areas shall be increased three times considering the land in which value rate of agricultural land rate zone, or city, village, or other settled place belong to.

7.The fees of land used for travel and tourism purpose shall be estimated similarly to land fees of the nearest city, village, or other settled place in that zone.

8.The fees of land left fallow or uncultivated for a year without an official decision of authorities shall be estimated similarly to the fees for crop land in that zone.

9.If land possessing and/or using citizens or business entities in the special protected area and green zone of the capital city, construct toilet, which does not meet standards, land fees shall be estimated increasing two times.

/This paragraph was added by the law as of July 7, 2021/

Article 8.Exemption from land fees

1.The following payers shall be exempt from land fees for possessing and/or using the below mentioned land:

1/pastureland and hay fields for herder families;

2/for Mongolian citizens, by up to 90 percent of the fees for up to 0.07 hectare land possessed and used by him or her for residential use;

3/border strips for Mongolian citizens, business entities, and organizations;

4/historical and monumental area under protection despite of their ownership for all types of cultural organizations and possessing and using land for the purpose of protecting and reserving natural, historical and cultural monuments and historical and cultural immovable monuments by citizens, business entities, and organizations;

/This subparagraph was modified by the law as of July 7, 2021/

5/Possessing and using land by state and local owned orphanage and educational organizations of all levels in other than state specially protected areas;

/This paragraph was amended by the law as of July 7, 2021/

/This subparagraph was modified by the law as of December 8, 2006/

/This subparagraph was added by the law as of May 2, 2019/

6/Citizens, business entities, and organizations –from land fees, for up to first 5 years, for possessing and using land planted with perennial and leguminous plants in order to improve soil structure and/or to transplant to pastureland;

7/Citizens, business entities, and organizations –from land fees, until the first harvest, for possessing and using land planted anew with perennial plants, fruits and berries;

8/Fees for surrounding land used for union of apartment owners under contracts;

/This subparagraph was added the law as of July 1, 2005/

9/possessing land by managers and units of industrial and technological park for the purpose of industrial and technological park;

/This subparagraph was modified by the law as of July 5, 2022/

/This subparagraph was added by the law as of December 24, 2009/

10/citizens, legal entities, and organizations operating high technology industry in distant rural settled places and local areas shall be exempted 100 percent from land possession or use fees for the first five years and 50 percent for the next five years.

/This subparagraph was added by the law as of May 22, 2012/

11/citizens, legal entities and organizations operating trade, tourism and hotel services in free zone shall be exempted 100 percent from land possession or use fees for the first five years from the date of commencement of operations and 50 percent for the next three years.

/This subparagraph was added by the law as of February 12, 2015/

12/business entities and their branches conducting infrastructure and industry as energy, heat sources, networks, clean water supply, sewerage and treatment facilities, roads, railways, airports and main communication networks in the free zone and economic special zone of the capital city shall be exempted 100 percent from land possession or use fees for the first 10 years from the date of commencement of operations.

/This paragraph was amended by the law as of July 7, 2021/

/This subparagraph was added by the law as of February 12, 2015/

13/Business entities conducting activities specified in the Article 39.1 of the Law on Legal status of Ulaanbaatar, capital city of Mongolia, shall be exempted 100 percent from possessed and used land fees in economic special zone of the capital city for the first five years from the date of commencement of operations and 50 percent for the next three years.

/This subparagraph was added by the law as of July 7, 2021/

2.The Government shall decide whether to provide land fee allowance to citizens, business entities, and organizations, who use technologies to protect or rehabilitate land or environmental friendly technologies.

3.In case industrial and technological park area caused damage and a respective organization issued a conclusion that is was rehabilitated by guilty person at his/ or her own costs, land fees shall be exempted.

/This paragraph was added by the law as of December 24, 2009/

4.For the land fee allowance, specified in the subparagraph 2 of the paragraph 1 of this Article, citizens possessing and using land in the green zone in territory of the capital city shall meet condition not having an earth toilet.

/This paragraph was added by the law as of July 7, 2021/

5.In case it is detected that citizens and legal entities has not possessed or used land for the purpose, who exempted from land fees or taken allowance, exempted or allowanced land fees shall be indemnified to the budget.

/This paragraph was added by the law as of July 7, 2021/

Article 9.Imposition of land fees

/This Article was modified by the law as of November 13, 2019/

1.Land fees shall be calculated from the date of registration of the land possession and land use rights or inserting the state registration number into the shared database specified in the Article 9.11 of the General Law on State Registration.

2.The authority /official/ in charge of land fees shall impose the annual land fees specified in the Article 4 of this law and submit it to the tax authority by February 10 of the existing year.

3.In case the land possession or land use right is newly registered in the state registration of rights, the authority /official/ in charge of land fees shall impose land fee rate proportionally for the existing year and submit it to the tax authority within 10 days.

4.The authority /official/ in charge of land fees shall newly impose updated land fees in case of every changes of fair value of land, land valuation circle, level, region, zone, land possession and land use quotient and fee rate and percent in connection with that changes and submit it to the tax authority within 30 days.

5.The tax authority shall notify the land possessor and user in electronic or other forms in regards with imposition of land fees specified in paragraphs 2, 3 and 4 of this Article.

6.The heads of the state central administrative bodies in charge of land fees and tax matters shall jointly approve a regulation for exchanging information on land parcel number, type of land possession and land use, circle of land fair value, level, zone, area size, fair value of land, payer, fee rate and percent, imposition and payment and related other information in electronic and other forms.

7.Governor of the capital city and heads of the state central administrative body in charge of land and tax matters shall jointly approve regulations to impose land fees increasing two times specified in paragraph 9 of the Article 7 of this law and to provide allowance of land fees specified in subparagraph 4 of the Article 8 of this law.

/This paragraph was added by the law as of July 7, 2021/

Article 10.Paying and reporting land fees

1.Land fee revenue shall be injected to the aimag, soum, capital city and district budgets.

/This paragraph was amended by the law as of July 7, 2021/

2.An appropriate percentage of land fee revenue shall be expended on protection, rehabilitation of, or land organization measures for state-owned land other than possessed and used land by citizens, business entities, and organizations. The Government shall establish amount of funds to be expended for land protection, rehabilitation, and land organization measures in every year in consideration of the measures to be taken and land fee revenue in that year.

3.The authority /official/ in charge of land fees shall submit the annual report on the imposition of land fees to the relevant tax authority by February 10 of the following year and make the final settlement of the imposition.

/This paragraph was modified by the law as of November 13, 2019/

4.The tax authority shall supervise on imposition and payment of the land fees according to the General Law on Taxation.

/This paragraph was amended by the law as of November 13, 2019/

5.The land fee payer shall pay the annual fees in equal installments on a quarterly basis by the 20th of the following month and may pay the fees for the subsequent quarters in advance.

/This paragraph was added by the law as of November 13, 2019/

6.In case land possessed by a satellite city of the capital city belongs to other administrative and territorial units, land fees concerned to the land shall be paid to the budgets of those settling administrative and territorial units.

/This paragraph was added by the law as of July 7, 2021/

Article 11.Resolving disputes on land fees

1.Disputes arising in connection with land fees shall be resolved by the following organizations and/or officials:

1/disputes between a land fee payer and a relevant official of an agency in charge of land issues shall be resolved by superior level organization or official of that official;

2/disputes between a land fee payer and a Governor shall be resolved by the superior level organization or official of that Governor;

3/disputes between a land fee payer and a relevant official of the tax authority shall be resolved by the  official specified in paragraph 81.1 of the Article 81 of the General Law on Taxation.

/This paragraph was amended by the law as of November 13, 2019/

2.In case a land fee payer does not accept the decision of organizations or officials specified in paragraph 1 of this Article with regard to the land fee dispute, a court shall resolve it.

Article 12.Liability for violation of Law on Land Fees

/This Article was modified by the law as of November 13, 2019/

A person, who violated the legislation on Land Fees, shall bear responsibility as stated in the Land Law, General Law on Taxation, Law on Special Protected Areas and Law on Petty Offense.

Article 13.Entry int oforce of the law

This law shall be entry into force from July 1, 1997.

CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA GONCHIGDORJ.R