Taxes, taxes, and more taxes

If you are planning to hire translators, cooks, guides, or other assistants during your time in Mongolia, please be aware that you may need to withhold and remit income and social insurance taxes to the local tax authority. In the United States, the burden of claiming informal income is put on the individual tax payer, but in Mongolia the burden is usually placed on the individual or entity it is administratively easier to assess a tax liability against. Employers are required to withhold income taxes (10% of gross) and, depending on the type of employment, social insurance taxes (11% of gross) from those who provide labor services, and remit the withholdings to their local tax authority. Individual researchers can often neglect the tax regulations without having problems, but large projects are likely to experience difficulties because of their visibility. Individual researchers should work with their host institutions to ensure that they are properly conforming to tax laws. Larger project managers should consult with a tax professional about options for registering the project and properly remitting taxes to local authorities. Contact the Business Council of Mongolia for information about tax professionals in Ulaanbaatar.