Small and medium scale companies’ income tax lowered www.montsame.mn
Ulaanbaatar /MONTSAME/ President Tsakhiagiin Elbegdorj made a statement on national security issue at the plenary meeting of the State Great Khural held on February 2. The statement was heard behind closed doors. The Parliament discussed the bill on revenue and expenditure of the National Treasury Fund under closed regime.
After the session transferred into an open regime, the parliament passed seven legal documents on final readings.
One of the bills passed were the amendments to the Entities’ Income Tax Law. The amendments suggested changes in favor of the companies, which are engaged in productions of food, clothing, construction materials and agricultural products and has annual sales income of less than MNT 1.5 billion. The entities that fall under the category will enjoy only 1 percent income tax between January 1 of 2017 and January 1 of 2021. In this way, the income tax rate is being cut by 90 percent.
The country’s economic growth has been slowing down and the unemployment rate has been increasing in the recent years. The majority of registered companies in Mongolia are running small and medium scale businesses.
The revised bill is expected to alleviate their tax burden and enable them to increase their investment, in order to accelerate the economic growth and reduce unemployment.
Published Date:2017-02-03