⚖️ WHAT TO EXPECT IN 2023 ... LEGALLY | INSIDE MONGOLIA IN 2022

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Welcome to our 50th edition! We're proud of what we've achieved and motivated to do even better. Thank you for supporting us and staying with us on this journey. Let 2023 be our year! 🥳

🤔 DID YOU KNOW?

⚖️ SET YOUR LEGAL EXPECTATIONS

Progressive taxation on personal income

The Personal Income Tax (PIT) rate in Mongolia has stood at a flat 10% for a decade. However, this November, the Mongolian parliament introduced a ‘progressive’ PIT rate. According to the amendment to the Law on Personal Income Tax, taxpayers will now pay as follows:

• If annual net income is within the range of ₮0-120 million - 10%;

• If annual net income is within the range of ₮120-180 million - ₮12 million plus 15% on income exceeding ₮120 million;

• If annual net income exceeds ₮180 million - ₮21 million plus 20% on income exceeding ₮180 million;

Property valuations companies to be licensed

The Law of Mongolia on Property Valuation was renewed on June 17 of 2022 and is effective from yesterday. Previously, only individuals had to obtain a special license to run a property valuation business, but now companies themselves have to be licensed as well.

Changes in corporates income taxes

By the amendments to Law on Corporate Income Taxes, the following changes have been made:

• The dividend tax rate for securities to be publicly sold, except those of companies that hold a mineral license, is decreased from 10% to 5%;

• Operational income tax rate for investment funds becomes 0%;

• For start-up companies specified in the Law on Innovations, the tax exemption period is increased from 3 to 5 years.

• For IT companies, the withdrawing tax rate on income for software and server services supplied from foreign countries is decreased from 20% to 5%.

Pawnshop businesses officially legalized

This newly adopted law on money loan services regulates pledge loan services (such as pawnshops) and loan services from individuals. The minimum capital for individuals and entities to provide loan services is set at ₮10,000,000. Such businesses must be registered with the Financial Regulatory Commission or the Governor (Capital city or Province), depending on the amount of their share capital.

Minimum wage

The new minimum wage is set at ₮3273.81 per hour or ₮550 000 a month.

🧐 2022 RECAPPED

Inside Mongolia's 1st edition was published on January 27, and since then we've gained around 9 thousand followers across our all social media accounts on Facebook, Instagram, Twitter and LinkedIn.

Our greatest achievement of 2022 was, perhaps, the fact that we really did manage to go international. We now partner with global companies, such as Dow Jones' Factiva and Newstex, that distribute our content to readers at top enterprises all around the globe.

In the end, it's truly an honor to be a small, but reliable bridge connecting Mongolia to the world! We look forward to delivering even more engaging and valuable content this year. Stay tuned and have a productive first week of 2023. 🧠

📌 Mongolian Stock Exchange successfully closes IPO. The primary market order of the IPO reached ₮57.9 billion in total which is almost five times more than the target of ₮11.9 billion. Half of the funds will be allocated to strategic investors. Detailed distribution plan soon to be announced.

📌 Mandal Financial Group acquires Tenger Insurance, the third largest insurance company in Mongolia with more than 70 thousand customers. As the owner of multiple insurance companies now, Mandal Financial Group hereby significantly strengthens its influence in the industry.

🟦 TOP NEWS

1. New Year greetings from President U.Khurelsukh (MONTSAME)

2. Harvest Moon: Mongolia's Oscar Submission for Best International Feature Film Receives US Press & Industry Premiere (Yahoo Finance)

3. Mongolia Must Do More To Fight Corruption After Protests: Minister (BARRON'S)

4. Mongolia Advances to Prevent Crimes and Offenses against Cultural Property (Benzinga)

5. When China sneezes, the Mongolian economy catches a cold (bne IntelliNews)

6. Economic Corridor “China — Mongolia — Russia”: Infrastructure in Focus (Modern Diplomacy)

7. President Issues Decree on Restoring Mongolia’s Ancient Capital (MONTSAME)