Oyu Tolgoi LLC pays MNT 230 billion under Tax Act by Mongolian Tax Authority www.montsame.mn
Ulaanbaatar /MONTSAME/. On February 26, 2021, the Government of Mongolia issued a press release stating that Oyu Tolgoi LLC has paid MNT 229.8 billion as the first installment under the Tax Act issued by the General Taxation Authority of Mongolia (Mongolian Tax Authority - MTA).
“In 2018 MTA imposed a Tax Act for Oyu Tolgoi LLC for additional MNT 377 billion of taxes after conducting audit on its tax filings and returns covering the period of 2013–2015. With respect to around MNT 350 billion of this Tax Act, Oyu Tolgoi had initiated an arbitration process at the London Court of International Arbitration,” the press statement reads.
“In addition, the MTA completed an audit of Oyu Tolgoi LLC’s 2016-2018 tax returns and in December 2020, notified to the Oyu Tolgoi LLC of MNT 649.4 billion (approximately US$228 million) of additional cash tax, inclusive of penalty and default interests, which subsequently Oyu Tolgoi declined to accept and announced to include the latest tax assessment matters in the existing international arbitration.”
“In line with the revised General Taxation Law, adopted by the State Great Khural, the parliament of Mongolia on March 22, 2019, the Mongolian Tax Authority sent, on February 10 and 19, 2021, respectively, the Tax Assessment claim to Oyu Tolgoi LLC for MNT 649 billion due to be paid to the government of Mongolia.”
“In compliances with the tax act claim by the MTA, Oyu Tolgoi LLC paid MNT 229.8 billion as the first installment to the government budget on February 25, 2021.
“As such, the Oyu Tolgoi LLC has started paying for the taxes it owes under the Tax Act issued by the MTA, obeying the tax legislations of Mongolia in the scope of the talks underway between the Mongolian government’s working group and Oyu Tolgoi’s investor side and as a result of the continuous demand put forward to pay taxes owing to Mongolia in full same as any other legal entities operating in Mongolia.”
Published Date:2021-03-01