Mongolia’s New Investment Law?

  • 2023-08-16
  • 170

Best News!

The Government of Mongolia is moving to substantially improving the Investment Law of Mongolia.  The proposed law has already been submitted to the Parliament of Mongolia.

Major changes to be made to the current Investment Law (2013) will include:

  • The minimum foreign investment threshold will be abolished. Currently, it is USD 100,000.
  • The tax stabilization period will be extended to 10 years if the investment is approximately USD 3 million, and 15 years if the investment is approximately USD 15 million, and 20 years if the investment is approximately USD 30 million.
  • 4 taxes will be stabilized: Business income tax, VAT, Customs tax, and Mining royalties.

In addition to shares and securities investment, and M&As, Foreign Investment will also include:

  • Marketing agreements
  • Management agreements
  • Other agreements (what may be eligible under this category is not defined)
  • Financial lease
  • Franchising
  • Other investments which fall withing the meaning of foreign investment.
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