💸 Mongolia Prepares Major Tax Code Overhaul

JCI ASPAC Returns to Mongolia After 8 Years

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Khulan MendsaiKhan
June 09, 2025 • Estimated Reading Time: 10 minutes

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Today’s highlights in 3 sentences…

  • 📌 Highlights from JCI ASPAC

  • 📊 New Sandbox Rules for Fintech Innovation

  • 💸 Major Tax Code Changes on the Horizon

No Time to Waste. Let’s Get Started! 🦘

MARKET

CUS: Foreign trade dips 7.3% to $9.9 billion in the first 5 months of 2025. 

FRC: Financial Regulatory Commission approves new sandbox amendments to support fintech innovation while setting clearer rules for market transition, risk control, and anti-money laundering compliance.

MNG: Uzbekistan launches pilot cargo shipment on Uzbekistan-Kyrgyzstan-China-Mongolia corridor.

🇲🇳 JCI ASPAC Returns to Mongolia After 8 Years

Mongolia is set to host the JCI Asia-Pacific Conference (ASPAC) once again from June 12-15, marking its second time staging the event since debuting as host in 2017.

👥 5,000 Delegates, $18 Million Economic Boost

The conference is expected to draw over 5,000 young professionals, business leaders, and entrepreneurs from more than 70 countries. Organizers project the event will inject up to $18 million into Mongolia’s economy in just one week. This influx will benefit local hotels, restaurants, airlines, and transport providers. Additionally, around 18,000 temporary jobs are expected to be created through direct and indirect support services.

📊 Agenda Focus: Digital Transformation, Green Growth & Entrepreneurship

Over 4 days, ASPAC 2025 will highlight 3 pillars, Digital transformation, Green growth, and Entrepreneurship. The conference will host 130 events designed to inspire innovation and foster collaboration across the region. A standout feature is the NEXUS Business Forum, which will connect Mongolian startups with global investors, providing a vital platform for funding and growth.

✈️ Unlocking Mongolia’s Business Tourism Potential

While Mongolia’s leisure tourism has steadily grown over the past 3 years, business travel remains largely untapped. Organizers and officials view ASPAC 2025 as a catalyst for diversifying Mongolia’s visitor profile, positioning the country as a hub for international business engagement.

  • 🗣️ “Mongolia may not yet be known as a business travel destination, but events like ASPAC open the door to sustained international collaboration,” said B. Samadi, COC Deputy Director.

Finally… Mongolia’s geopolitical neutrality and third-neighbour foreign policy continue to bolster its reputation as a stable, impartial host for global events. Amid growing regional uncertainty, the country is emerging as a trusted venue for dialogue and cooperation, presenting a prime opportunity to expand its tourism portfolio by attracting more business travelers and international conferences.

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ECONOMY & BUSINESS

  • Asian Battery Metals Stakes Early Ground in Mongolia’s Critical Minerals Race. (Proactive)

  • Mongolian National Chamber of Commerce and Industry and Golomt Bank to Cooperate in Empowering Women Entrepreneurs. (MongolChamber)

  • Ulaanbaatar City to Launch Tender for Thermal Power Plant-5. (Ulaanbaatar) 

POLITICS

  • Mongolia Forces Rio Tinto Into Major Engineering Change at Copper Mine. (AFR)

  • The Power of Protest: Mongolia’s Victory vs. Georgia’s Ongoing Battle for Change. (Kursiv)

  • Mongolia Appointed as Vice Chair of the Asia Food and Agriculture Cooperation Initiative. (Kazinform)

  • Presidents of Mongolia and Turkmenistan Hold a Press Briefing. (President.mn)

  • Russia Offers Comprehensive Support to Address Damage at "Thermal Power Plant-3". (isee)

CULTURE & LIFESTYLE

💸 Mongolia Prepares Major Tax Code Overhaul

As Mongolia prepares to appoint a new Prime Minister and Cabinet, significant tax code reforms are set to roll out, affecting both individuals and businesses.

  • 📜 The draft, shaped by input from 13,000 taxpayers, 150 meetings, and 176,000 proposals, will soon be submitted to Parliament and is likely scheduled to take effect on January 1, 2026.

🔎 Key VAT Updates 

  • Tiered Refunds: Consumers may receive VAT refunds based on purchase value, 100% for amounts up to ₮500,000, 50% for ₮500,000–₮800,000, and 20% above ₮800,000.

  • Registration Threshold: Businesses with sales over ₮400 million must register as VAT withholding agents.

  • Cash Purchases: VAT on cash purchases without receipts can now be deducted as “absorbed” VAT, offering some flexibility.

🤵🏻 Personal Income Tax

  • Exemption: Employees earning up to ₮800,000 per month will be fully exempt from income tax.

  • Incentives: Citizens relocating to rural areas and purchasing green homes will qualify for tax deductions up to ₮15 million.

  • Extended Deadlines: Quarterly reports will be due by the end of the following quarter, and annual reports 2 months after the fiscal year ends, easing compliance pressures.

🏛️ Corporate Tax Adjustments Target Growth and Fairness

  • Progressive Rates: Companies with profits between ₮6 and ₮10 billion will be taxed at 15%, and those exceeding ₮10 billion at 25%.

  • SME Support: The income threshold for a reduced 1% tax rate rises to ₮2.5 billion for the next 3 years.

  • Foreign Digital Services: For the first time, VAT will apply to foreign electronic service providers who must register as withholding agents.

Looking Back & Forward: The 2019 tax reform led to a fivefold increase in company closures in Q1 compared to previous years, highlighting the importance of a more measured rollout this time. Lawmakers say these changes aim to modernize Mongolia’s tax system, boost compliance, and support economic growth. But for the reform to truly benefit citizens and businesses, it needs to go deeper, addressing underlying challenges and ensuring fair, sustainable support for both individuals and companies.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.