Until the end of December last year, there was a government resolution that freed small- and medium-sized businesses from value-added taxes and custom taxes under the condition that they imported industrial technologies and equipment. Starting this year, this resolution didn’t exist.
As a part of the 100 Day Stimulus Plan, the government decided to bring this legislation back into action. It was passed June 6th of this year by amending the custom tariff and tax law with certain changes. Small- and medium-sized businesses were still freed from these taxes.
However, not only small- and medium-sized companies will benefit. For events and projects hosted by large businesses, they have the option to partially pay taxes or fully pay taxes after a time allotment of two years. This provides big companies flexible timing, as long as their projects incorporate everyone’s interests, in other terms, reaches a national level.
In Mongolia, there are currently 66,500 companies and businesses. Of these 66,500, 92% have less than 20 employees, placing them in the range of small and medium-sized companies. Of these smaller businesses, 80% require a replacement of old equipment. These companies can use this tax-free option for the next two and half years.
SOURCE: Mongolian Economy