1. 0
Capital requirements for non-Mongolian investors
Tax stability
Bilateral investment treaties of Mongolia
Taking security in mongolia
Mongolia Investment Law: select issues
2. 1
Definition of “investment”:
–equity investment
–foreign equity investment > 25% of paid-in capital
–other forms of investment also allowed
Capital contribution by each non-Mongolian investor
(shareholder) > US$ 100,000
Capital requirements for non-Mongolian investors
3. 2
1. Corporate taxation:
–CIT - 10% (or 25%)
– VAT - 10%
– Customs duty - 5%
– Capital gains - 10% (or 2% of gross value in case of property)
–Social insurance contribution - 11% (of overall payroll)
– Mining royalty – 2,5%-5%, plus surtax of 1%-30% (depending on
minerals, market prices and degree of processing).
2. Withholding taxation of non-residents (dividends, interest, profit
repatriation, royalties, any other Mongolian-source income – all 20%)
3. Certain rates may be reduced under double tax treaties.
Tax stability: key Mongolian taxes
6. 5
Governing law of standard loan documentation
Popular security assets:
–Immovable (buildings and land title)
–Mining licenses
–Equity shares
–Movable property (vehicles, equipment)
Taking Security in Mongolia
7. 6
QUESTIONS ?
Disclaimer:
The information in this presentation and the answers given to
questions are for general information only. Specific
professional advice should be obtained in respect of any
transaction or dispute.
Mongolia Investment Law: select issues
