Tax Alert: 16 August 2013

New Tax Laws

With the supervision of Ministry of Finance and Ministry of Economic and Development, project on drafting new and amending of the tax laws of Mongolia is being
carried out currently. Mongolian National Chamber of Commerce and Industry on its webpage has requested the business community to send their opinion of the draft
tax laws.

The following laws have been proposed for new drafts and amendments:
- General Taxation Law;
- Environmental Pollution Fee Law;
- Corporate Income Tax Law (CIT);
- Natural Resources Usage Fee Law;
- Value Added Tax Law (VAT);
- Customs Law;
- Customs Duty Law;
- Personal Income Tax Law (PIT);
- Inheritance and Gift Tax Law;
- City Tax Law;
- Subsurface Fee Law;
- Registration of cash and non-cash payment and rewarding;
- Mining and Oil Fee Law;
- Law on Lottery.
- Property Tax Law;


We understand that the suggested changes are expected to cover, amongst other things, the following issues:
- Taxation of foreign legal entities in Mongolia (permanent establishment concept, concept of the ‘place of effective management’, Mongolian source income
definition);
- More detailed rules for taxation of mining companies (separate chapter on mining in CIT Law, potential change in CIT rate for mining companies);
- Increase of VAT registration threshold;
- Changes to VAT treatment of exported mining products;
- Changes to VAT place of supply rules;
- Changes to PIT rates.

Please note that these legislative changes have still yet to pass to the Parliament and its approval.
We will keep you updated on further developments in respect of this matter.

Source: (1) http://www.mongolchamber.mn/index.php/home-page/home/2012-08-27-08-34-57/2224-2013-07-29-113431