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LAW OF MONGOLIA

April 24, 1997 Ulaanbaatar

 

 

ON LAND FEES

 

Article 1.Purpose of law

The purpose of this law is to charge citizens, business entities, and organizations with fees for possessing and/or using state-owned land, and to regulate the relations arising from paying the fees to the state budget.

Article 2.Legislation on land fee

The legislation on land fees shall consist of the Land Law, General Law on Taxation, this Law and other legislative acts issued in conformity with these laws.

Article 3.Land fee payer

Mongolian citizens, business entities, or organizations possessing or using land based on contracts made according to the terms and conditions of the Land law based on the decision to issue land for possession and use in accordance with legislation, and foreign diplomatic missions and consular offices, representative agencies of international organizations, foreign legal bodies and citizens and stateless persons that use land shall be land fee payers.

/This article was amended by the law of 13 November, 2019/

Article 4.Land subject to fee charge

Land fees shall be charged for lands falling under the main classification of the unified land territory or special usage land specified in Article 10 of the Land law and for lands possessed or used by citizens, business entities, or organizations according to contracts decision made by competent authority.

/This article was amended by the law of 13 November, 2019/

Article 5.Land base rate and principle determining it

1.The land base rate shall be determined by the Government.

2.The following principles shall be followed in establishing land base rate:

1) the land rate of cities, villages, and other settled places shall be determined depending on their rank, location, engineering facilities, social, economic, engineering, geological and environmental conditions and their utilization purpose;

2) rates of lands except those referred in 1) of this paragraph shall be determined differently for each zone depending on their purpose of use, geographical location, and as well as income differential caused by the land fertility and yield.

3.Division of unified land territories by integrated natural and territorial conditions into rating zones and the value ratings of cities, villages, and other settled places shall be determined by the Government.

Article 6.Indicators used in estimating land fees and determining the indicators

1.The units of indicators used to set land fees shall be determined as follows:

1) the fee of land possessed or used as pastureland is to be estimated as a percentage of the base rate of the unit square of the land and for per head of livestock animal converted to sheep head equivalent;

2) Land fee shall be charged for each km of land under roads or networks referred in Article 13 of the Land law;

3) For lands other than those referred in 1 and 2 of this paragraph, land fee shall be charged at a percentage of the base value of one hectare land.

2.When setting the land fee of pastureland by converting the number of livestock heads into sheep heads, the number of horses counted at the end of the previous year should be multiplied by 6.0, cattle – by 6.0, camels-by 5.0, and goats –by 0.9.

3.Land fee charged for the base rate of land under cities, villages and other settled places maybe increased or decreased - within the ranges specified in 3), paragraph 1, Article 7 of this law- by ratios dependent on their engineering facilities, purpose of use, location, environmental impact, and the need to protect the green belt. The boundary of land to which a ratio is to be applied and the ratio value shall be determined by the Citizens’ representatives meeting of soums and districts.

4.Land fee shall be determined according to the total size of the possessed and/or used land.

5.When determining the fee of land allocated to foreign diplomatic missions and consular offices, if considered necessary the principle of reciprocity with the country shall be followed.

Article 7.Amount and percentage of land fee

1.Land fee shall be established by the indicators stated in Article 6 of this law as percentage of the land base rate, within the following range:

1) land fee range for per head of sheep pasture is 0.01-0.03 %1;

2) land fee range for per hectare possessed and/or used land allocated for cultivation and haymaking- 0.01-0.03 %;

3) land fee range for per hectare possessed and/or used land of cities, villages, and other settled places - 0.1-1.0 %;

4) the minimum land fee for per km land of roads and networks is 1500 MNT, and the maximum –7500 MNT;

5) land fee range for lands other than those referred in subparagraphs 1) to 4) of this paragraph is 0.01-0.03 %.

2.The amount of land fee shall be determined by the Government, within the ranges specified in paragraph 1 of this Article, for each agricultural land zone, city, village, and other settled places according to their land rate.

3.The fee of land under agricultural buildings and facilities shall be twice as low as the land fee of the nearest city, village, and other settled places in the land.

4.The land fee of citizen, legal entity and organization operating in accordance with respective legislation, agreement in mining claim shall be set twice as high as that of the nearby city zone of country or aimag level.

/This paragraph was amended by the law of 02 May 2019/

5.The fee of land of citizen, legal entity and organization operating in accordance with respective legislation, agreement in forest or water reservoirs shall be twice as high as that of the nearby city zone of country or aimag level.

/This paragraph was amended by the law of 02 May 2019/

6.For citizens, companies, and organizations running activities in conformity with appropriate legislation and contracts, on the territory of specially protected areas, the land fee of these areas as they belong to agricultural land rate zone, or city, village, or other settled place rate shall be increased three times.

7.The fee of land used for travel and tourism purpose shall be the same as that of the nearest agricultural rate zone or city, village, or other settled place.

8.The fee of land left fallow or uncultivated for a year without an official decision of authorities shall be the same as the fee for crop land of that agricultural zone.

Article 8.Exemption from land fee

1.The following payers shall be exempt from land fees for possessing and/or using the below mentioned lands:

1)herder families, exempt from fees for pastureland and hay fields;

2)Mongolian citizen, exempt from 90 % of the fee for up to 0.07 hectare land possessed and used by him or her for residential use;

3)Mongolian citizens, business entities, and organizations - from fees for border strips.

4)Mongolian citizens - from fees for land made to be possessed by them so that the natural, historical, and cultural valuable objects can be kept and protected;

5)Lands other than that belong to state specially protected areas of state registered orphanage and educational organization of all levels regardless of their ownership type – from land use or possession fees;

/This paragraph was amended by the law of 08 December 2006/

/Part in blue was added by the law of 02 May 2019/

6)Citizens, business entities, and organizations –from land fees, for up to first 5 years, for possessing and using lands planted with perennial and leguminous plants in order to improve soil structure and/or to transplant to pastureland;

7)Citizens, business entities, and organizations –from land fees, until the first harvest, for possessing and using lands planted anew with perennial plants, fruits and berries;

8)union of apartment owners, from land fee possessing under contract;

/This paragraph was amended by the law of 01 July 2005/

9)land possession of production, technological park management, unit for production, technological park designation;

/This paragraph was amended by the law of 24 December 2009/

10)citizen, legal entity and organization operating high technology production in rural settled places, local areas shall be 100 per cent exempted from land possession or use fee for the first five years; 50 per cent for next five years.

/This paragraph was added by the law of 22 May 2012/

11)citizen, legal entity and organization operating trade, tourism and hotel service in free zone shall be 100 per cent exempted from land possession or use fee for the first five years; 50 per cent for next three years.

/This provision was added by the law in 12 February 2015/

12) business entities and their branches engaged in infrastructure and production in the free zone, such as energy, heat sources, networks, clean water supply, sewerage and treatment facilities, roads, railways, airports and main communication networks 100 percent of the land fee for land possession and use in the free zone from the date of commencement of operations for the first 10 years.

/This provision was added by the law in 12 February 2015/

2.The Government shall decide whether to provide land fee partial or whole exemption to citizens, business entities, and organizations who use technologies to protect or rehabilitate land or environmentally friendly technologies.

3.Land fee shall be exempted in case that the conclusion is made by respective organization about the land of production, technological park is rehabilitated by guilty person at own cost.

/This paragraph was amended by the law of 24 December 2009/

Article 9.Charging land fee

1.Land fee shall be calculated from the date of registration of the land possession and land use rights or insertion of the state registration number into the shared database specified in Article 9.11 of the General Law on State Registration.

2.The authority (official) in charge of land fees shall impose the annual land fee provided in Article 4 of this Law and submit it to the tax authority by February 10 of the existing year.

3.If the land possession or land use right is newly registered in the state registration of rights, the authority (official) in charge of land fee shall impose a proportional amount of land fee for the existing year and submit it to the tax authority within 10 days.

4.The authority (official) in charge of land fees shall impose and submit updated land fees to the tax authority within 30 days in case of any changes in the base land value, land valuation district, region, zone, land possession and land use coefficient, and amount.

5.The tax authority shall notify the land possessor and user, in electronic or other forms, of the imposition of land fees specified in Sections 2, 3 and 4 of this Article.

6.The heads of the state central administrative bodies in charge of land fee and tax matters shall jointly approve the procedure for exchanging information, in electronic and other forms, on land parcel number, type of land possession and land use, base land value and its district, region, zone and area size, land fee payer, fee amount, imposition and payment and other related informatiom.

/This article was amended by the law of 13 November, 2019/

Article 10.Paying and reporting land fee

1.Land fee revenue shall be put to the aimag, capital, soum and district budgets.

2.An appropriate percentage of land fee revenue shall be expended on protection, rehabilitation of, or land organization measures for state-owned lands not possessed and used by citizens, business entities, and organizations. Depending on the measures to be taken in a year and the year’s land fee revenue, the Government shall decide each year the amount of fund to be expended on land protection, rehabilitation, or land organization measures.

3.The authority (official) in charge of land fees shall submit the annual report on the imposition of land fees to the relevant tax authority by February 10 of the following year and make the final settlement of the imposed fees.

/This paragraph was amended by the law of 13 November, 2019/

4.The tax authority shall supervise, according to the Law on tax levy and payment supervision and tax collection General Law on Taxation the land fee levy and payment.

/This paragraph was amended by the law of 13 November, 2019/

5.The land fee payer shall pay the annual fee in equal installments on a quarterly basis by the 20th of the following month and may pay the fee for the subsequent quarters in advance.

/This paragraph was added by the law of 13 November, 2019/

Article 11.Resolving land fee disputes

1.Disputes arising in connection with land fee shall be reviewed and resolved by the following organizations and/or officials:

1) disputes between a land fee payer and a relevant official of an agency in charge of land issues shall be resolved by the official’s next higher level organization or official;

2) disputes between a land fee payer and a Governor shall be resolved by the Governor’s next higher level organization or official;

3) disputes between a land fee payer and a relevant official of the tax authority shall be resolved by the tax official’s next higher level organization or official officials set out in 81.1 of the General Law on Taxation.

/This sub-paragraph was amended by the law of 13 November, 2019/

2.In case a land fee payer does not accept the decision of an organization or official referred in paragraph 1 of this Article made with regard to a land fee dispute, a court shall resolve the dispute.

Article 12.Liability for Violation of Law on Land Fees

The violation of the Law on Land Fees shall result in liabilities as per the Law on Land, General Law on Taxation, Law on Special Protected Areas and Law on Offense.”

/This article was amended by the law of 13 November, 2019/

Article 13.Effective date of this law

This law shall be in effect from July 1, 1997.

 

 

SPEAKER OF THE PARLIAMENT OF MONGOLIA R.GONCHIGDORJ