This document discusses several key issues relating to investment in Mongolia, including capital requirements, taxation policies, bilateral investment treaties, and taking security. It notes that non-Mongolian investors are required to contribute over $100,000 in capital and hold over 25% equity. It also outlines some of Mongolia's major taxes like corporate income tax, VAT, customs duties, and mining royalties. The document explains how tax stability certificates provide certain tax rate guarantees for eligible investors. It also briefly discusses Mongolia's bilateral investment treaties and laws governing security for foreign investments.

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”:
–only equity investment
–foreign equity investment > 25% of paid-in capital
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

4. 3
Benefits
Eligible taxes
Criteria for eligibility
Beneficiary
Duration of stability
Tax stability: Certificate of Tax Stability

5. 4
About 40 BITs
Scope
Rights and guarantees
Practical relevance
Bilateral Investment Treaties of Mongolia

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

8. 7
Contact details:
MDS & KhanLex LLP: The merged law firm of KhanLex
Advocates LLP and MDS Associates LLP
Mr.Enkhbat B, Partner
 Commercial, Energy
 Phone: +976 99111061
 Email: enkhbat@mdsa.mn
Mr.Sugarnyam P, Partner
 Finance, Property
 Phone: +976 99999678
 Email: sugarnyam@mdsa.mn
Ms.Odmaa B, Partner
 Mining, Corporate
 Phone: +976 11330048
 Email: odmaa@mdsa.mn
Ms.Dugerjav D, Partner
 Capital Markets, Legislative
 Phone: +976 99119181
 Email: dugerjav@mdsa.mn
Mr.Batjargal G, Partner
 Mining, M&A
 Phone: +976 99001070
 Email: batjargal@mdsa.mn
Mr.Maizorig J, Partner
 PPP, Infrastructure
 Phone: +976 88103905
 Email: maizorig@mdsa.mn
Ms.Munkhgerel D, Partner
 Litigation
 Phone: +976 11330048
 Email:Munkhgerel@mdsa.mn
MDS & KhanLex LLP
2nd floor, G-Mobile HQ
Baga toiruu 3/9, 1st khoroo, Chingeltei
district, Ulaanbaatar 15160, Mongolia
Tel: (+976) 11 330048
Fax: (+976) 11 330049
info@mdsa.mn, www.mdsa.mn