Mongolia is considering new tax benefits and financial support for esports players as part of a proposed change to its corporate tax law.
As per local reports, Speaker of Parliament N. Uchral has received a draft bill submitted by Member of Parliament P. Sainzorig. The bill proposes amendments to the Law on Corporate Income Tax to include esports, which is seen as a fast-growing and promising sport in Mongolia.
Under current law, tax relief is only given to Olympic-type sports organizations registered under the Mongolian National Olympic Committee and the Paralympic Committee. Their teams, athletes, and coaches can receive tax benefits. However, esports teams and players are not included, as esports is not officially recognised under these categories.
Prize money earned by athletes and teams in Mongolia is generally taxed at 5% as personal income. If an esports club operates as a company, it may also face 10% corporate income tax. The new proposal targets changing this. It would allow national esports teams and registered players to receive the same tax exemptions. It also says that prize money, incentives, and similar income given by foreign organizations to Mongolian esports teams would not be taxed.
Lawmakers say this move could encourage more children and young people to take part in esports. It could also reward successful esports players competing in regional and global tournaments, and help local businesses compete in the international esports market.
Even before Mongolia, multiple countries had already taken steps to formally recognise esports as a traditional sport and offer tax advantages to players. Singapore did so after passing a bill on 14 January 2026, extending recognition to esports and mind sports like chess.
Germany advanced toward recognising esports as a non-profit activity, while Colombia has officially declared esports a sport under a law sanctioned by President Gustavo Petro. South Korea is also considering similar tax incentives, though legislation is still pending.
Mongolia has recently boosted its esports popularity due to the competitive success of The Mongolz in Counter-Strike 2. The club was even awarded the status of National Team in 2025.
Follow The Esports Radar on social media:
