Mongolian tax administration issues transfer pricing assessment

Mar 22, 2021

As part of its efforts to align the country’s tax rules with international best practices, the Mongolian Tax Administration issued its first transfer pricing tax assessment in late 2020 for approximately USD $228 million and a denial of USD $1.5 billion in carried forward losses. The transfer pricing assessments relate to Mongolia’s mining sector, which makes up more than 80 percent of Mongolia’s exports and 24 percent of fiscal revenues. 

Since 2019, the OECD and the Intergovernmental Forum on Mining, Minerals, Metals, and Sustainable Development (IGF) have been working with the Mongolian Tax Administration to strengthen revenue collection from the extractives sector, which contributed more than 80 percent of Mongolia’s exports and 24 percent of fiscal revenues in 2019. 

The BEPS in Mining Programme is a joint initiative of the IGF and OECD. The programme provides technical assistance and capacity building to resource-rich developing countries and helps address the causes of BEPS in the mining sector. 

For more information read the OECD’s update.