Lkhagvajav Baatarjav, President of the MNCCI, addressed, “Business representatives held long discussions with the Ministry of Finance on the package bills. We believe that these laws are well-prepared for setting the foundation of a good tax system.”

Minister of Finance Khurelbaatar Chimed highlighted that the key changes in the package bills are the extension of the tax payment period from two months to 24 months, instant repayment of overpaid taxes, the improved authority of tax officials, prevention of investigation on no-risk taxpayers, annulment of the prescription period on tax evasions, and improved accountability of tax authorities.

“Within the frames of the bill, the Government will hold policy to support fair and responsible taxpayers and cut the costs of deductibles. We will take firm actions against tax evasions, avoidance, and unfair taxpayers, collecting full taxes in accordance with the law,” noted Mr. Khurelbaatar. The bill sets a fixed tax rate of 10 percent and entities with an annual income of MNT 50 million or lower will pay 1 percent tax and are required to submit a single financial report throughout the year. While the entities with an annual income of MNT 3 billion or lower are required to submit half-annual reports, the high-income firms are required to submit quarterly reports.

Key changes in the Corporate Income Tax include a reduction of 20 percent tax on the outbound transfer of income to 15 percent, 20 percent deductibles on dividends to foreigners to 5 percent, and 10 percent tax on bank-based financial sourcing to 5 percent.