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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


Regulatory Update

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

Posted in Legal and Regulatory, Regulatory Update | Leave a comment

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
Posted in Energy, Featured, Markets, Mining, Regulatory Update | Leave a comment

Mongolia May Bar Foreign State-Owned Companies

May 23 – Mongolian Parliament may pass a law that will bar foreign state-owned companies from controlling its key assets by June.

The draft “Law on Regulation of Foreign Investment in Business Entities of Strategic Importance,” submitted to Parliament two years ago, was accelerated after a public outcry following state-run Aluminum Corp. of China’s move last month to take control of SouthGobi Resources, Vice Finance Minister Ganhuyag Chuluun Hutagt said in an interview with Bloomberg. Continue reading

Posted in Business, Foreign Trade, Legal and Regulatory, Regulatory Update | Tagged , , , , , | 1 Comment

Entities with Middle-Aged Personnel to be Free from Social Insurance Tax

Apr. 11 – New amendments to the country’s social insurance law may interest entities who employ middle aged individuals, as a draft law suggests releasing them from paying such employees’ social insurance payments.

According to the law, all entities are currently paying the following rates for each employee:

  • 7 percent for pension insurance
  • 0.5 percent for benefit insurance
  • 2 percent for health insurance
  • 1-3 percent for industrial accident and occupational disease insurance
  • 0.5 percent for unemployment insurance Continue reading
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Tax Bureau Upgrading to Electronic Filing

Jul. 7 – The General Office of Taxation in Mongolia will convert all of its services to an electronic format by 2013.

With the support of the World Bank, the U.K.’s Crown Agent Company, and Daewoo Corporation of Korea, this project will be 80 percent complete within the next 18 months. Continue reading

Posted in Legal and Regulatory, Regulatory Update, Tax and Accounting | 2 Comments

Mongolia’s Wolf Economy Comes in from the Cold

The investment opportunities are all about mining, minerals, and entrepreneurial adventures

Op-Ed Commentary: Chris Devonshire-Ellis

ULAAN BAATAR, Mar. 4 – The main focus of what is going to be a decade of massive change for the Mongolian economy is going to be mining. In fact, the massive reserves that the nation possesses are such that there is talk of a “mining mania” and serious concern about how this young nation can cope with the implications this natural bonanza will bring. Continue reading

Posted in Business, Culture & History, Featured, Finance, Legal and Regulatory, Markets, Mining, Politics, Regulatory Update, Tax and Accounting | Leave a comment

Ten Things We’ve Learned about Mongolian Democracy (and China)

Op-Ed Commentary: Chris Devonshire-Ellis

ULAANBAATAR, Mar. 4 – Attending the Mongolian Economic Forum this week has in part been an interesting case study in two contrasting and competing systems of government. While Ulaan Baatar, the capital of Mongolia, lies closer to Beijing than Shanghai does, it employs a democratic system as opposed to the one-party state. That system itself has only been in operation for 20 years, about the same time as China has risen to become a world trading giant. In such close proximity to each other, the differing political contrasts are quite apparent. So what have we learned this week about Mongolian democracy as compared to China’s one-party state? Continue reading

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Governance Key in Unlocking Mongolia’s Massive Wealth

Mongolia’s Parliament Building, Ulaan Baatar. Chingghis Khan sits in the center.

The world’s newest mineral-rich investment hotspot has surprises up its sleeves

Op-Ed Commentary: Chris Devonshire-Ellis

ULAAN BAATAR, Mar. 3 – Governance was the main theme at the Mongolian Economic Forum being held in Ulaan Baatar, as the country begins to come to terms with its newfound status as a major global player in critical resources. Continue reading

Posted in Business, Culture & History, Legal and Regulatory, Markets, Politics, Regulatory Update | Leave a comment




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