New Investment Law passed
The Mongolian Parliament, at the start of its new session has approved a new Investment Law. This supersedes the Law on Foreign Investment and the Law on the Regulation of Foreign Investment in Business Entities Operating in Sectors of Strategic Importance. Local newspapers report that 83% of legislators voted for the bill.
InfoMongolia reports that amendments and supplements were also made to the “Law on State Registration, General Law of Taxation, Legal Entity Income Tax Law, Customs Tariff and Customs Tax Law, Law on Mineral Resources, Law on Special Licenses of Legal Entity Operation, Petroleum Law, Law on Concessions, and other relevant regulations accompanying the Law on Investment of Mongolia”.
The Mongolian National News Agency (Montsame) reports that “By the investments law, an entity that makes investment of above MNT 15 billion will be given a guarantee that the four taxes are to be stable”. It goes on to say that “For instance, if a size of investment goes up, the term of guarantee for the tax stabilization shall increase. An entity which makes an investment of MNT 300-500 billion for erecting a factory near regions of Ulaanbaatar, it will be provided with a guarantee of stable tax for a decade. An investment with the same size in the western region will have the stable tax guarantee for 13 years, and the investment in the central region — for 11 years. The regions are divided into five sections”.