Ceasing your tax residency in Mongolia is a crucial step if you plan to relocate abroad and wish to avoid any tax liabilities in the country. This guide walks you through the essential steps to officially terminate your tax residency.
Step 1: Notify the Tax Administration
Inform the Mongolian Tax Administration of your intention to cease your tax residency. This notification should be submitted in writing and include details such as your reason for leaving, your new address abroad, and the date of your departure.
Step 2: Settle Outstanding Taxes
Ensure that all your tax obligations in Mongolia are settled. This includes paying any outstanding taxes, penalties, and interest. Obtain a clearance certificate from the tax authorities to confirm that you have no pending tax liabilities.
Step 3: Deregister from Social Security
If you are registered with the Mongolian Social Security system, you must formally deregister. This will involve submitting the necessary forms and documentation to the relevant social security office.
Step 4: Close Bank Accounts
Close all your bank accounts in Mongolia to avoid any future complications related to tax residency status. Notify your bank of your departure and ensure all transactions are settled.
Step 5: Cancel Local Memberships and Subscriptions
Terminate any memberships, subscriptions, or services that tie you to Mongolia. This includes gym memberships, magazine subscriptions, and local service contracts.
Step 6: Obtain a Residency Certificate from Your New Country
Secure a residency certificate or equivalent documentation from your new country of residence. This will serve as proof of your new tax residency status and help facilitate the process of ceasing your tax residency in Mongolia.
Step 7: Submit Final Tax Returns
File your final tax returns with the Mongolian Tax Administration. This should cover the period up to your departure date. Ensure that all income earned while you were a resident is reported.
Step 8: Receive Confirmation from Tax Authorities
After completing all the above steps, receive written confirmation from the Mongolian Tax Administration that your tax residency has been officially terminated.
Legal References
- Mongolian Tax Administration Law
- Mongolian Social Security Law
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