Tax Alert: 23 April 2012

Cancellation of DTTs

There have been certain actions taken by the Government of Mongolia in the area of international taxation and application of tax treaties.

On 26 October 2011, the Prime Minister Mr. S. Batbold in his speech regarding "Budget for 2012" mentioned that the Government is working on revising, amending, or even considering cancellation of all Double Tax Treaties (“DTT”) if they are viewed to be in prejudice of the Mongolia economy. To initiate this work, the Ministry of Finance has prepared a proposal to the Ministry of Justice and Ministry of Foreign Affairs to cancel all 30 in force DTTs that Mongolia has signed with other countries (source: http://www.iltod.gov.mn/?p=2611).