Companies that create new jobs will be supported with tax policy
The government of Mongolia launched actions for amendments to the tax laws, aiming at backing the investment and business environment, creating new jobs and protecting the interests of businessmen and taxpayers. In this regard, Bills 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 first discussion entitled 'Tax Reform' was held at the Mongolian National Chamber of Commerce and Industry, where Prime Minister U.Khurelsukh gave opening remarks, introducing a set of tax changes to encourage business and investment. In his remarks, the Prime Minister said, “The Government of Mongolia focuses on creating a fair tax environment for business and job creation. It will promote good taxpayers and fair businessmen and reduce their tax costs. The principle is to combat tax avoidance and unfair competition. With this reform in tax law, we are fulfilling our promise to not raise taxes. Moreover we are reducing some types of taxes.”
He also introduced the fundamental principles and directions of the Bill on General Taxation. “For SMEs with annual sales income less than MNT1.5 billion, 90 percent of income tax paid by them will be refunded regardless of sector. Individuals and businesses with up to MNT50 million annual sales incomes are given tax preference to pay one percent tax of sales income and make a simplified tax report once a year.”
The Bill reads that in case a taxpayer cannot afford to pay the tax on time because of unfavorable economic and business circumstances, it shall be avoided to use compulsory measures such as closing one’s banking account. If the taxpayer proves their capability to pay the tax in full thereafter, the law provides an extension term for up to 2 years.
Read the full article on the Mongol Messenger