The fourth day of the “Investment and Trade Agency Week” was successfully held under the theme “Highlighting Taxation, Investment, and the Business Sector.”
The event was opened by Mr. Sanaser S., Advisor to the Deputy Prime Minister on Foreign Investment and Procurement and B.Nurjamal, Project Manager, GIZ, Improved Conditions for Economic Diversification Project. The session brought together representatives from key institutions who shared insights on tax policy, the ongoing reform of Mongolia’s tax legislation package, the investment climate, and the current state of the business sector.
Presentations were delivered by:
Mr. Chimidsuren B., Director of the Tax Policy Department at the Ministry of Finance, who presented on “Tax Law Reform and the Investment Environment.”
Mr. Battulga Ch., Deputy Director of the Mongolian National Chamber of Commerce and Industry, who discussed “The Current Situation and Opportunities for Businesses with Foreign Investment.”
Mr. Adiya O., Executive Director of the American Chamber of Commerce in Mongolia, who spoke on “Mongolia’s Investment Environment and the Tax System.”
Mr. Erdene E., Executive Director of the European–Mongolian Chamber of Commerce and Industry, who presented on “Reforms in Mongolia’s Business Environment and Challenges Facing Foreign Investors.”
During her presentation, Mr. Chimidsuren B. highlighted that Mongolia is implementing phased reforms to develop a tax system that is fairer, more inclusive, and supportive of business growth. As part of the 2025 tax law reform process, extensive nationwide consultations were conducted, gathering over 176,000 proposals from more than 13,000 citizens and businesses. Notably, 52.4% of these proposals have been incorporated into the draft reforms, demonstrating the significant role of public participation in shaping tax policy.
The reform agenda outlines several key objectives to be achieved by 2028, including:
Strengthening the progressive tax system to help reduce income inequality
Implementing tax policies that protect household income
Establishing a fair VAT framework that does not impose additional burdens on businesses
Introducing data-driven tax and customs administration through the use of big data
In addition, amendments to the General Taxation Law are being developed with several important provisions, including:
Transitioning to a taxpayer support system that focuses on advisory services and the prevention of tax risks;
Introducing a tax compliance rating system to encourage and support responsible taxpayers;
Removing the regulation that fully freezes the bank accounts of taxpayers with tax debt, instead allowing 20% of incoming funds to remain accessible;
Extending the deadline for correcting tax reports to up to two years;
Limiting the maximum penalty interest rate to 50%
Suspending the imposition of penalties and fines while disputes are under review by the Dispute Resolution Council or the courts
These reforms aim to enhance transparency and efficiency within the tax system, improve the business environment, and support Mongolia’s sustainable economic growth.
The “Investment and Trade Agency Week” will continue on March 13 under the theme “Export Opportunities in the Trade and Business Sector.”
