President proposes changes to the revised draft of Law on Corporate Income Tax
PoliticsUlaanbaatar/MONTSAME/. On
March 20, President of Mongolia Khaltmaagiin Battulga forwarded an official
letter to Chairman of the State Great Khural G.Zandanshatar regarding a
proposal on changes to the revised draft of the Law on Corporate Income Tax
which is under consideration of the ongoing extraordinary session of the State
Great Khural.
President Battulga submitted
the proposal on account of his belief that “…the revised draft encompasses
several provisions that will leave negative outcome, including detrimental
effects on the tax interests of Mongolia caused by the significant reduction of
tax rates for foreign investors, foreign corporate entities and local entities
associated with them, and tax inequality among domestic and foreign corporate
entities due to the significant reduction of tax rates for major national
companies operating in the mining sector, and this fails to comply with the
fundamental concept of the revision which aims to support small and
medium-sized enterprises (SMEs) through tax policy.”
One. Concerning some provisions
in the revised draft on reducing the rates of tax paid, reported, and withheld
by foreign-funded companies implementing large-scale mining projects with
strategic importance to the Mongolian economy, as well as multinational
corporations investing in these companies that will consequentially lead to
deterioration in Mongolia’s international taxation, changes have been proposed
on multiple clauses.
Two. Regarding some newly
added provisions in the revised draft on significantly reducing the rates of
tax imposed on major companies operating in the mining sector and hold multiple
mining licenses that will put them at a higher tax advantage than SMEs, changes
have been proposed on two sections and a clause.
Three. Regarding some
provisions in the revised draft that will lead to increased administrative and
tax pressures on SMEs while the law is being revised in the name of supporting
SMEs, changes have been proposed on multiple clauses.
source: president.mn