The government of Mongolia has launched actions for amendments to the tax laws, aiming at backing the investment and business environment, creating new workplaces and protecting interests of businessmen and taxpayers. In this regard, draft new versions have been formulated for the general law on taxation, on the income tax of enterprisers as well as the income tax of individuals.
On March 5, the Mongolian National Chamber of Commerce and Industry (MNCCI) and the Ministry of Finance co-organized the first series of discussion on amendments to these laws with participation of representatives of entities. It was attended by U.Khurelsukh, Prime Minister, Ch.Khurelbaatar, Minister of Finance, and authorities and board members of the MNCCI.
The Premier pointed out that the government is working to make the tax environment more equal and fair, directing at a friendly business environment and creation of new job places, and added the taxes will get friendlier for those who regularly pay the duties, whereas the government will take serious actions to fight against those companies avoiding taxes or running unfair competitiveness.
U.Khurelsukh explained basic principles of the general law on taxation which is under discussion, saying that regardless of a sector, those small and middle-sized entities with annual sales of below MNT 1.5 billion will get back 90 percent of the income tax they paid under specific criteria.
The Premier also said the government will maintain a policy on reducing air pollution in Ulaanbaatar through a housing program. “The draft law on taxes will reflect some regulations to maximize the tax relief for purchasing apartments and to back mortgage credit through a tax policy,” he said.
“Most economically-powerful states usually grow and develop, standing on their private sector, and this sector makes up over 80 percent of the Mongolian GDP. This series of discussion on tax launched today is vital to make the business environment friendlier and more favorable,” the Premier underlined.
The Prime Minister’s speech was followed by a presentation by Ch.Khurelbaatar, Minister of Finance, about main changes in the new version of tax laws. Tax imposing and reporting will be simplified, he emphasized.
He said taxpayers will be given advice on working out of the tax reporting in order to avoid possible mistakes, but it could be corrected within a year. Furthermore, the deadline for tax payment could be prolonged for 24 months, and the overpaid taxes will be given back, he added.
At the end of the discussion, the participants delivered their opinions to the government and inquired some issues. They were informed that clauses on imposing of responsibilities will be removed from the conflicts law, thus it will be regulated by the general taxation law.