Mongolia and IMF to develop blueprint for tax reform

Oyundelger 2017-06-09 07:06

Economy

Mongolia is to work with the International Monetary Fund from August to review the tax settings for the country's mining sector and to reform the value-added tax regime.

Mongolia and IMF to develop blueprint for tax reform. Mongolia is to work with the International Monetary Fund from August to review the tax settings for the country's mining sector and to reform the value-added tax regime. The IMF said it will provide technical assistance to help make changes to the country's tax on mining "revenue-neutral or revenue-enhancing" and more efficient. “An appropriate tax regime for mining is... important, with the aim being to continue to incentivize participation by foreign companies, with their specialized expertise, while allowing Mongolia to gain the benefits from its resource endowment. While existing agreements will be respected, the mining tax regime for future projects will be considered as part of a comprehensive review of the tax system that the authorities are undertaking." noted IMF. Besides mining sector, Mongolian authorities intend to review petroleum tax rates; increase excise duties on vehicles and tobacco; make the personal income tax regime more progressive; withholding tax will be applied more broadly; and social security contribution rates will be hiked significantly over three years until 2020 told IMF. An IMF working group will submit its report by end-December 2017.