These three bills include a range of articles that are favorable for investors. For 
instance, the tax package will cut the deduction on special permission sales from 30 
percent to 10, taxes on dividends allocated from stocks to 5 percent and the savings 
rate of commercial banks to 5 percent. Plus, the bill will also allow for a 90 
percent tax return on small and medium-sized enterprises with an annual income of up 
to MNT 1.5 billion. Within the frame, the tax threshold for entities, which 
currently stands at MNT 3 billion, will be increased to MNT 6 billion, and the 
depreciation period will be lowered. The tax package also sets loss carryforward at 
five years regardless of sector.

As for the draft law on procurement, it offers a 20 percent preferential reduction 
on prices of goods of Mongolian origin to support domestic production due to the 
fact that import products account for over 90 percent of Government purchases. The 
National Industrial Council emphasized that the current bill does not support the 
domestic industry and leading to a stimulation of imports, ultimately causing 
negative impacting on the economy.

The Minerals Law, which has been the center of attention for investors for several 
months, will give a five-year extension to the 2.5 percent gold royalties. The 
discount period was ended this year, resulting in about 6-9.5 percent royalties. 
Analysts previously marked that gold purchase of the Bank of Mongolia (BoM) dropped 
significantly with the increased gold tax.

Additionally, the release of the Director and Deputy Director of the Independent 
Authority Against Corruption, as well as the appointment of the Chief of the General 
Staff of the Mongolian Armed Forces and the Deputy Prosecutor General, are also on 
the Parliament’s order list in relations to the end of their tenure.