During its regular session on June 4, 2025, the Cabinet of Mongolia discussed the draft Law on Amendments to the General Law on Taxation and decided to submit it to the State Great Khural (Parliament) of Mongolia.
The amendments aim at improving the availability of advisory services for taxpayers and facilitating the accessibility of information and advice necessary for the implementation of customs and tax legislation. As a result, disputes between taxpayers and tax and customs authorities related to the application of laws will decrease, and conditions will be created to prevent tax violations.
One of the main goals of the advisory services is to prevent taxpayers from risks and support their voluntary compliance with tax legislation. In this context, in situations where taxpayer compliance decreases or tax risks are assessed negatively, taxpayers are notified about potential issues in advance, allowing them to address and correct errors. It will prevent tax violations, ensure the stability of the tax environment, and allow taxpayers to conduct responsible and transparent activities.
In addition, the tax authorities will extend the period for correcting tax returns, rather than issuing an act after the taxpayer makes a mistake. Accordingly, it will play a crucial role in trusting taxpayers and conducting tax collection and inspection more effectively, less burdensome for taxpayers, and more risk-based.
The draft Law eliminates the regulation that completely closes the bank accounts of taxpayers whose financial situation has worsened and who have fallen into tax debt, and includes a regulation that freezes a certain part of the account. This action will have an important impact on ensuring that taxpayers manage to pay their debts without disrupting their normal business operations.

Published Date:2025-06-05