LAW OF MONGOLIA 

June 29, 2006                                                                                        Ulaanbaatar city

(2022.09.23-ны өдрийн орчуулга)  Unofficial translation

 ON EXCISE TAX
/Revised edition/ 

Article 1.Purpose of the law

1.1.The purpose of this law is to regulate relations in connection with imposition of excise tax on specific domestic and imported goods, special purpose technical devices and equipment that are used for quizzes and gambling,  and inpiduals and legal entities that conduct these activities, and payment of such tax to the budget.
 

Article 2.Legislation on excise tax

2.1.The legislation on excise tax shall comprise of the General Taxation Law, this law and other legislative acts enacted in conformity with them.
 

Article 3.Excise taxpayer

3.1.Inpiduals and legal entities that imported goods, domestically produced and sold goods,  or are conducting quizzes and gambling activities that are subject to excise tax in accordance with this law shall be the excise taxpayers.

Article 4.Goods and activities subject to excise tax

4.1.The following goods shall be subject to excise tax:

4.1.1.All types of alcoholic beverages;

 4.1.2.All types of tobacco;

4.1.3.Gasoline and diesel fuel; and

4.1.4.Automobiles;

4.1.5.By-products of oil production, kerosene.

/This sub-paragraph was added by the law as of July 06, 2021/

Commentary: Oil production by-products are heavy fraction diesel fuel, naphtha and alkylate.

4.2.Excise tax shall be imposed on physical units of special purpose technical devices and equipment that are used for quizzes arid gambling, and activities of inpiduals and legal entities which conduct these activities.
 

Article 5.Physical units subject to excise tax

5.1.Imposition of excise tax with respect to goods specified in Article 4. 1 of this law shall be based on the following physical units:

/This sub-paragraph was added by the law as of July 06, 2021/

5.2.Imposition of excise tax on goods produced in the territory of Mongolia shall be determined on the basis of total physical units of goods sold by a producer.

5.3.In case of goods subject to excise tax are transferred and donated free of charge or used by inpidual and legal entities for personal use, such goods shall be considered sold and be subject to excise tax.

5.4.Imposition of excise tax on special purpose technical device and equipment specified in Article 4.2 of this law shall be based on the following physical units:
 

Article 6. Excise tax rate to be imposed

6.1.Excise tax shall be imposed on physical units of goods specified in Articles 4.1.1, 4.1.2, and 4.1.5 of this law and those of domestically produced gasoline and diesel fuel at the following rates:

/This paragraph was amended by the law as of July 06, 2021/

/The sub-paragraph 10 of this paragraph was added by the law as of July 06, 2021/

/The sub-subparagraph 2 of this paragraph was annulled by the law as of July 6, 2022 and it shall come to in force on January 1, 2023/

/The sub-subparagraph 2 of this paragraph was modified by the law as of November 11, 2007/

/The sub-subparagraphs 8 and 9 of this paragraph were modified by the law as of May 22, 2008/

/The sub-subparagraph 1 of this paragraph was amended by the law as of March 12, 2009/

/The sub-subparagraph 5 of this paragraph was amended by the law as of March 12, 2009, and this change was annulled and the previous sub-paragraph was restored by the Resolution No.2 dated as of May 27, 2009 of the Constitutional Court of Mongolia /

/The sub-subparagraph 6 of this paragraph was amended by the law as of March 12, 2009/

/The sub-subparagraph 7 of this paragraph was modified by the law as of March 12, 2009/

/The sub-subparagraph 2 of this paragraph was modified by the law as of September 11, 2012/

/The sub-subparagraph 6 of this paragraph was modified by the law as of September 11, 2012/

/The sub-subparagraph 7 of this paragraph was modified by the law as of September 11, 2012/

/This paragraph was modified by the law as of January 23, 2015/

The sub-paragraphs 2 and 4 of this paragraph were modified by the law as of February 5, 2016/

/This paragraph was modified by the law as of April 14, 2017/

6.11.Excise tax shall be imposed on physical units of all types of white alcohol, liqueurs, cordials and other spirits drinks and all types of brandy, whiskey, rum and gin at the following rates:
 

/This paragraph was added by the law as of July 6, 2022 and it shall come to in force on January 1, 2023/

6.2.Excise tax shall be imposed on gasoline and diesel fuel specified in Article 4.1.3 of this law at the following rates based on point of import at frontier posts:

/This paragraph 6.2 was modified by the law as of May 22, 2008/

/The sub-paragraphs 1,2, and 3 of this paragraph 6.2 were modified by the law as of January 16, 2009/

/The sub-paragraph 4 of this paragraph 6.2 was added and the sub-paragraph 3 was amended by the law as of October 30, 2015 respectively/

6.3.In case of an automobile specified in Article 4.1.4 of this law is imported, excise tax shall be imposed at the following rates based on period following the production year and volume of engine cylinder:

/This paragraph was modified by the law as of April 14, 2017/

6.4. Excise tax shall be imposed on special purpose technical devices and equipment specified in Article 4.2 of this law at the following rates:

/This paragraph was modified by the law as of January 23, 2015/

6.5.Excise tax equal to MNT 36250000 per month shall be imposed on activities of inpidual and legal entities that conduct quizzes and gambling using electronic network, internet, and cellular telephone network.

/This paragraph was amended by the law as of January 23, 2015/

6.6.Imposition of excise tax shall be based on an official exchange rate of USD against Mongolian togrog set by the Bank of Mongolia on a given day.

/This paragraph was annulled by the law as of January 23, 2015/

6.7.The excise tax percentage and rate on gasoline and diesel fuel shall be determined by the Government, taking into account the specifics of the sectors, within the ranges specified in Articles 6.1 and 6.2 of this law.

/This paragraph was added by the law as of May 22, 2008/

/The addendum to this paragraph was made by the law as of September 11, 2012/

6.8.The Government shall determine the excise tax percentage and rate to be imposed on hybrid automobile, liquefied gas-powered automobile, and electric automobile from 0 to 50 percent of the rate specified in Article 6.3 of this law.

/This paragraph was added by the law as of June 8, 2017/

Article 7.Excise tax exemptions and discounts

/The addendum to the title of this Article was made by the law as of April 14, 2017/

7.1.The following goods are exempted from excise tax:

7.1.1.Goods specified in Article 4.1 of this law that are produced in the territory of Mongolia and exported;

7.1.2.Mongolian milk alcohol distilled in household conditions using a simple means for personal consumption;

7.1.3.Snuff tobacco;

7.1.4.Duty-free alcohol and tobacco for passenger's personal use as authorized by the Customs Authority;

7.1.5.Hybrid automobile;

/This sub-paragraph was annulled by the law as of April 14, 2017/

Liquefied gas-powered automobile;

/This sub-paragraph was added by the law as of June 24, 2010/

/This sub-paragraph was annulled by the law as of April 14, 2017/

Electric automobile.

/This sub-paragraph was added by the law as of June 24, 2010/

/This sub-paragraph was annulled by the law as of April 14, 2017/

The excise tax rate to be imposed on hybrid automobile, liquefied gas-powered automobile, and electric automobile shall be discounted by 50 percent.

/This paragraph was added by the law as of April 14, 2017/

/This paragraph was annulled by the law as of June 08, 2017/
 

Article 8.Imposition and payment of excise tax to the budget

8.1.The customs authority shall impose excise tax on imported goods at each point of import at the Mongolian border and transfer the tax income to the treasury account.

8.2.A taxpayer shall pay the tax to the budget in advance on goods produced in the territory of Mongolia that are subject to excise tax other than spirits within the 25th of each month.

8.3.A taxpayer shall submit the excise tax report on goods produced in the territory of Mongolia to the taxation authority on monthly basis by the 5th of the following month.

8.4.Excise tax imposed on spirits sold by distillery producers shall be paid to the budget within 2 working days.

8.5.Documents with uniform numbering shall be issued to buyers when spirits produced in the territory of Mongolia is sold. Format of the document shall be approved by the administrative authority in charge of taxation matters.

8.6.The excise tax paid for the spirits used for the alcohol and wine produced and sold in the territory of Mongolia shall be deducted from excise tax to be imposed on the alcohol and wine on the basis of the document specified in Article 8.5 of this law.

8.7.The excise tax imposed on the bulk tobacco imported as a raw material used for the cigarettes produced and sold in the territory of Mongolia shall be deducted from excise tax to be imposed on such cigarettes.

8.8.A taxpayer shall submit a monthly update with respect to changes in types and quantity of taxable physical units specified in Article 5.4 of this law to a corresponding tax authority by the 10th of the following month. The tax authority shall record the changes in the taxpayer registration certificate and impose taxes due in that month retrospectively on newly installed device and equipment.

8.9.A taxpayer that conducts activities specified in Articles 6.4 and 6.5 of this law shall pay taxes due in a given month in advance within the 25th of each month and submit the report to the tax authority within the 10th of the following month.

8.10.Excise tax on gasoline and diesel fuel imported for the purpose of stockpiling of the company shall be imposed on the date of sale for the purpose of replacement of the company's stock, based on the Government's decision on the name of the business entity stockpiling of the company, the quantity of gasoline and diesel fuel that must be kept necessarily, and the replacement period.

/This paragraph was added by the law as of December 21, 2007/

8.11.Excise tax on gasoline and diesel fuel equivalent to 30 days of consumption in Mongolia other than collecting stockpiling of the company imported by the petroleum product retail and manufactory license holder company shall be imposed with a delay of 30 days.

/This paragraph was added by the law as of December 21, 2007/

8.12.The government member in charge of finance and budget matters shall approve the procedures related to the payment of taxes to the budget specified in Article 6.7 of this law.

/This paragraph was added by the law as of September 11, 2012/
 

Article 9.Entry into force

9.1.This law shall enter into force as from January 1, 2007.

9.2.Paragraphs 4.2, 5.4, 6.4, 6.5, 8.8, and 8.9 of this law shall enter into force as from August 1, 2006.

CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA NYAMDORJ.TS