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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


Business

Mongolia Revises its Investment Regulatory Framework

By Elena Fehrbach

The new Investment Law has been passed as a result of an extraordinary Parliamentary session in Ulaanbaatar. The new Investment Law will replace the Law of Mongolia on Foreign Investment and the Law on the Regulation of Foreign Investment in Business Entities Operating in Sectors of Strategic Importance.

Though the new Law has been announced as adopted, the text version of the document is not available for public yet. As reported by sources close to the matter, up to 75 amendments have been suggested for review compared to the first versions of Laws. In order to legally implement the new Law, 11 (eleven) other Laws, such as for instance, the Law on the State Registration of the Legal Entities as of 23 May 2003, should be amended. Continue reading

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Law on Prohibiting Mineral Exploration and Extraction Near Water Sources, Protected Areas and Forests

By Elena Fehrbach

The Mongolian Government is currently reviewing the Law on Prohibiting Mineral Exploration and Extraction Near Water Sources, Protected Areas and Forests. This Law is commonly referred as the “Long Name Law”. The first version of the Law was adopted in 2009 aiming to keep the mineral extraction operation within the environmental framework that would ultimately protect rivers and forests from harmful disturbing. Continue reading

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Luxembourg Initiates DTA Negotiations with Mongolia

By Elena Fehrbach

Aug. 4 – According to the announcement by the Ministry of Foreign Affairs of Luxembourg as of July 30, foreign ministries of Luxembourg and Mongolia have agreed to negotiate a Tax Treaty on Avoidance of Double Taxation. Continue reading

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Update on the Law on Customs Duty Exemptions and VAT

By Elena Fehrbach

On June 7th, the Parliament of Mongolia has reviewed the Law on Exemption from VAT and the Law on Exemption from Customs Duty. The following additional regulations which are directly related to the Laws have been approved:

  1. Regulation “Addition to the Parliament Decree”. According to the Regulation, import of new buses and trolleybuses produced not more than 1 year ago, models with 24 seats/48 passengers capacity will be exempt from VAT and will be subject to zero percent customs duty. Regulation is effective from 1 January 2014 to 31 December 2016. Continue reading
Posted in Business, Finance | 1 Comment

Update on the Allocation of the Government Bond

By Elena Fehrbach

Jun. 14 – Mr. N. Altankhuyag, the Prime Minister of Mongolia, has provided an updated decisions related to the allocation of the Government Bond, also known as the Chinggis Bond.

According to the resolution of the Government of Mongolia and the Policy Council of the Chinggis Bond, US$50 million will be spent to build Thermal Power Plant at Tavan Tolgoi coal mine with capacity of 450 megawatts. The start up of the Plant is expected in 2017. Continue reading

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Ulaanbaatar Welcomes the Official Inauguration of the City Procurement Office

By Elena Fehrbach

May 23 – The City Procurement Office of Ulaanbaatar or Tender Agency has been officially inaugurated in Ulaanbaatar. The authority is aiming to work with the State and local funds to organize the procurement of goods and services.

The Agency has been established in October 2012 and D. Terbishdagva, the Deputy Minister has been in charge of it. During the inauguration ceremony, D. Terbishdagva and N. Altankhuyag, the Prime Minister, have presented the report on the Agency activities over the last 6 months. N. Altankhuyag stated at the ceremony that the work performed by the Agency has become transparent, fair and more economically efficient and since now, the tenders will be organized under the transparent and fair management. Continue reading

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Samsung C&T Corp to Build Railway Connecting Tavan Tolgoi with Chinese Border

By Elena Fehrbach

May 21 – South Korean Samsung C&T Corporation won the tender and signed the agreement for the construction of a 217 kilometer railway that will connect Tavan Tolgoi coking coal deposit with the Mongolia-China border.

The project also assumes construction of the relevant infrastructure, such as rolling stock depot. Samsung will be sole contractor to implement the project. Estimated cost of the project is US$483 million. Continue reading

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Strategic Foreign Investment Law Approved

By Elena Fehrbach

May 7 – One of the most important laws in Mongolia, a Strategic Foreign Investment Law (SFIL) has been approved by the Government. The amendment is effective from 19 April 2013.

Article 4.7 was amended and now stipulates that the Parliament will be an approval authority for transactions where non- Mongolian State- owned enterprises initiate acquisition of more than 49% of the issued shares of a Mongolian entity. The current amendment no longer includes deals initiated by private investors that since now do not require Parliamentary approval and 100 billion MNT (equivalent to approximately 70 million USD) threshold in its entity. Continue reading

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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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