New “Transfer Pricing Form” has been approved.

Information related to the transaction on works, services and products between associated entities used to be reflected in Clarification 7, Annex TT-02 form to the Ordinance #492 by the Commissioner of General Department of Taxation dated May 10, 2012. The statement used to be submitted by the taxpayers of the State Budget Revenue and Audit Department.

The statement were approved by filling in the statement on “Transaction on works, services and products among the associated entities” (Form XMM-01) used to create a nationwide database, preliminary analysis on taxpayers with transfer pricing risks, and confirm tax imposition through an indirect method by the Ordinance A/96 by the Commissioner of General Department of Taxation dated April 28, 2017.

According to the paragraph 48.4, Article 48 of the General Law on Taxation “Associated entities” shall mean “Entities authorized to directly and indirectly participate in management, control and property rights of any foreign and Mongolian legal entities”.

The related information shall be reported as per the form twice a year starting from the first half of 2017 in case that the foreign-invested business entities and domestic group companies make a transaction on products, works and services. Therefore, the taxpayers need to submit their report in a timely manner.

Please click on this link for the (FORM XMM1) in Mongolian