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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


Legal and Regulatory

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

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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

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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

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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

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The Draft Bill on the Treasury Fund has been Introduced in Mongolia

By Elena Fehrbach

Mongolia is making another step forward in the direction of establishment of their own Treasury Fund. The President of Mongolia has initiated the establishment of the Treasury Fund that should be based on the Government revenue from the mining industry. The first draft has just been discussed by the Parliament of Mongolia and on an opening remark, Mr. L.Dashdorj, the advisor to the President, stressed upon the lack of system and policy on saving of wealth for the long-term future usage by the next generation. Continue reading

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The Parliament of Mongolia is Discussing the Amendments to the Law on Minerals

By Elena Fehrbach

The Parliament of Mongolia is continuing the work on a draft of the new Law on Minerals. The core content of the Law is at the active discussion stage at the moment. The first draft of the new Law has been introduced in February 2013. The new draft is representing an attempt to bring the Law that regulates one of the most vital industries in the country to the new level, however some parts of the new Law that refer to the license ownership and the license holder’s rights still lack integrity, as the potential investors’ needs are not properly addressed. The first draft has been widely criticized by the local companies and foreign investors resulting in additional work on the draft. Despite further work on the new Law, the current version of the Law has added up a new amendment effective from the date it has been approved. Continue reading

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Oyu Tolgoi Budget and Issues Settlement Update

By Elena Fehrbach

Jan. 13 – According to the announcement by Mr. D. Ganbold, Director at Erdenes Oyu Tolgoi, a state-owned enterprise that holds state’s share in Oyu Tolgoi project, the financing of the second stage of Oyu Tolgoi development could be resolved by the end of January. The estimating financing of the second and the main stage is approximately 6.6 billion USD. The negotiations of the financing stopped in October 2013 when the Government of Mongolia and Rio Tinto entered into a dispute over a number of financial and operational issues. Continue reading

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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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