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Wednesday, July 6, 2011

Mongolia Briefing is a magazine and daily news service about doing business in Mongolia. We cover topics relating to the Mongolian economy, the market in Mongolia, foreign direct investment and Mongolian law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates

Featured Mongolia Briefing News

Latest Mongolia Briefing News

Draft Law on Economic Transparency and Tax Amnesty and Wording Amendment to the Law on Pledge of Movable Properties and Intangible Assets is Under Discussion by the Parliament of Mongolia

By Elena Fehrbach

Mr. Kh.Temuujin, the Minister of Justice has submitted bills of new Laws for discussion in the Parliament.

Law on Economic Transparency and Tax Amnesty

According to the Minister, the aim of the new Law is to reveal and maximize the tax payments from the hidden sources of income. The Law also targets elimination of forged financial and tax reports without penalties applied. Continue Reading

Mongolia Considers Raising Country’s Debt Ceiling to Facilitate Infrastructure Development

By Elena Fehrbach

The Ministry of Finance has prepared and presented a plan to raise Mongolia’s debt ceiling that would give opportunity to the country to sell more foreign debt to pay for infrastructure development.

The country’s current debt ceiling is 40 percent of GDP. The plan is to increase it to 70 percent, according to Mr. K. Ganzorigt, the State Secretary of the Ministry of Finance who announced the new plan while meeting with diplomats and foreign press. He mentioned that raising of the debt ceiling would form part of the new debt management plan in Mongolia. Continue Reading

Moody’s Downgrades Mongolia’s Government Bond Outlook to Negative and Affirms B1 Rating

By Elena Fehrbach

Moody’s Investors Service has changed the outlook on Mongolia’s government bond from stable to negative. At the same time, Moody’s affirmed government’s issuer and bond B1 ratings, unsecured MNT rating at (P)B1 and the issuer’s short-term Not Prime issuer rating.

As part of the rating action, Moody’s has changed the outlook on the government-owned bond raised by the Development Bank of Mongolia (DBM) from stable to negative and affirmed DBM’s senior unsecured B1 rating and its senior unsecured MNT (P)B1 rating. DBM’s debt obligations justify rating at the same level as the government of Mongolia as DBM’s payment obligations carry a credit guarantee of the government. Continue Reading

Mongolia to Cooperate with Russia on Major Infrastructure Projects

By Elena Fehrbach

On May 13, 2014, Mr. O. Chuluunbat, the Deputy Minister of Economic Development of Mongolia, met Mr. Alexey Likhachev, the Deputy Minister of Economic Development of Russia, to discuss bilateral cooperation and relations in various sectors of the economy. Continue Reading

Small and Medium Enterprises Will Be Exempt From Import Customs Duties and VAT Until December 31, 2016

By Elena Fehrbach

The Government of Mongolia has made a decision to extend the duration of the Law on the exemption of import of equipment and spare parts from customs duties and VAT for two more years until the end of 2016. The Law only refers to small and medium enterprises (SME). The Law was first introduced in 2009 with one extension. Continue Reading

Credit Ratings Update from Moody’s and Fitch

By Elena Fehrbach

Moody’s: Outlook for Mongolia’s banking system remains negative

Moody’s Investors Services (Moody’s) announce that the outlook on Mongolian banks remain negative due to expectations of continued weakness in Mongolia’s key commodity exports. Key commodities in Mongolia are coal and copper with the exports of both commodities accounting for 88 percent of total exports and 20 percent of Mongolia’s GDP. Continue Reading

New Methodology for the Minerals Royalty Calculation has been Established

By Elena Fehrbach

The Government of Mongolia has issued new Resolutions Nos. 88 and 89 on the definition and calculation of mineral royalties.

Basis for the royalty calculation and general terms:

  • The royalties on coal exports will be based on the export sale’s contract price of the coal mine owner. The previous royalty was based on the buying Chinese market price.
  • The mineral royalties shall be paid within 21 days after the commodities sale’s completion. In the previous version of the regulation, the royalty was supposed to be paid within the next quarter from the sales date. Continue Reading

Draft Bill on Tax Exemptions for Small and Medium Enterprises is Under Review by Parliament

By Elena Fehrbach

The Government of Mongolia has proposed a draft of the new bill amending taxation of the small and medium size entities (SME). The aim of the new bill is to support SME by providing more favorable and easy tax conditions. The new draft assumes amendments in the Law on VAT and the Law on Income Tax. Continue Reading

Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at mongolia@dezshira.com, download our corporate brochure or visit at us www.dezshira.com

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