Tax income of small and medium businesses lowered
Amendments are made to the Entities’ Income Tax Law.
Tax income of small and medium businesses is lowered. Amendments are made 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 would alleviate their tax burden and enable them to increase their investment, in order to accelerate the economic growth and reduce unemployment.
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