New Law effective on January to increase Real Estate Property Tax ...

By B.KHASH-ERDENE

The new law that will increase the Real Estate Property Tax for profit based organizations is to be effective starting January 1, 2013. The law will cover all real estate and property used for production and services and the tax will vary from 0.6 ? 1 percent depending on its zone location.
?If your company?s business is located in the central or zone one, the Real Estate Property Tax will be one percent. If it is located in the second and third zones, the tax will be 0.8 percent and if its located in the fourth or fifth zone, you will pay 0.6 percent tax,? said the Deputy Governor of Ulaanbaatar N.Bataa, to the New.mn.
The current Real Estate Property tax for profit base organizations is 0.6 percent. The law covering this was approved by the parliament in 2001. The government is working to make Ulaanbaatar able to produce its own budget. Therefore changes were made to the Real estate Property Tax Law so as to increase the income of the capital city, in 2010. The increased tax is expected to generate 3.8 billion MNT.
The tax will be paid quarterly by enterprises. The law states that real estate and property used for the purposes of housings such as apartments and ger district land will not pay the Real Estate Property Tax. But this does not apply to apartment and other premises used for office or other commercial purposes.
?At the moment, Ulaanbaatar?s income amounts to more than 390 billion MNT. From this, 3.8 billion will be transferred to the state budget and the rest will be used for the maintenance and other need of the city,? said N.Bataa.

Short URL: http://ubpost.mongolnews.mn/?p=1907

Posted by admin on Nov 22 2012. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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