Ulaanbaatar
Changes in tax bill introduced
Economy
Ulaanbaatar/MONTSAME/ The first discussion entitled 'Tax Reform' was held on March 5 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 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 one’s capability to pay the tax in full thereafter, the law provides extension term for up to 2 years.
The Government is committed to reducing air pollution through housing. U.Khurelsukh said that the Bill reflects regulations to double the size of existing tax allowance which is given to those who buy apartments, and supports housing purchases with mortgage loans through tax policy.
He noted, “All the strong economies in the world develop based on their private sector. Private sector of Mongolia accounts for about 80 percent of the economy. Today’s discussion is significant to build favorable business environment.”
Afterwards, Finance Minister Ch.Khurelbaatar introduced the principles and major changes to tax reform.
He highlighted, “Taxation and tax reporting of SMEs will be eased. Taxpayers will be provided with recommendations for preparing their tax reports in prevention of making errors. Reporting errors can be fixed within one year. Tax payables will be extended to 24 months, while it is two months now. The overpaid tax will be refunded.”
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 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 one’s capability to pay the tax in full thereafter, the law provides extension term for up to 2 years.
The Government is committed to reducing air pollution through housing. U.Khurelsukh said that the Bill reflects regulations to double the size of existing tax allowance which is given to those who buy apartments, and supports housing purchases with mortgage loans through tax policy.
He noted, “All the strong economies in the world develop based on their private sector. Private sector of Mongolia accounts for about 80 percent of the economy. Today’s discussion is significant to build favorable business environment.”
Afterwards, Finance Minister Ch.Khurelbaatar introduced the principles and major changes to tax reform.
He highlighted, “Taxation and tax reporting of SMEs will be eased. Taxpayers will be provided with recommendations for preparing their tax reports in prevention of making errors. Reporting errors can be fixed within one year. Tax payables will be extended to 24 months, while it is two months now. The overpaid tax will be refunded.”
A discussion on the revised tax bill is held every morning at the Ministry of Finance; thus he invited businessmen and individuals to take part actively in the discussion.
During the discussion, businessmen commented and asked questions and the Finance Minister and related officials gave responses.
M.Unurzul
