Mongolia issues first transfer pricing tax assessment for USD 228 million

On March 18, 2021, the OECD revealed that 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, as a result of the mining tax audit capacity building initiatives.

According to the OECD, the assessment represents a significant milestone and step forward for the Mongolian Tax Administration in executing its strategy to combat tax base erosion and profit shifting in the mining sector.

“The recent tax assessment builds upon focussed efforts by the Mongolian Tax Administration and the Ministry of Finance to align the country’s tax rules and practices with international best practices. Having joined the OECD’s BEPS Project and the Global Forum on Transparency and Exchange of Information for Tax Purposes, Mongolia is successfully implementing the BEPS measures by introducing a number of international taxation provisions,” the OECD said.

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