The matter was discussed at the Cabinet’s regular meeting on December 20, and Mongolia’s decision to forward a request to join comes after the EU blacklist of tax havens, which includes Mongolia.

Corresponding Ministers were assigned to study the necessity to sign the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting and Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

The Cabinet assigned Finance Minister Ch.Khurelbaatar and advised Mongolbank Governor N.Bayartsaikhan to take measures to create the legal environment for exchange of information from customer database of banking and financial institutions for only tax purposes.

The Finance Minister was also instructed to revise and make necessary amendments to some laws in order to improve the legal environment surrounding tax, and introduce the bills within the first season of 2018.

The Cabinet sees that Mongolia was blacklisted for failing to join the Global Forum on Transparency and Exchange of Information for Tax Purposes and comply with the BEPS initiative. In order to leave the list, Mongolia must join and express its affirmative stance on the conventions.

If the domestic legislations permit the tax authority gain access to bank information, it will also create access to the activities of Mongolian taxpayers in foreign financial institutes.