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AmCham Mongolia Daily Newswire

February 19, 2019

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Economic Standing Committee reviewed 20 issues during Parliament's autumn session
Economic Standing Committee reviewed 20 issues and 18 proposals and submitted them to Parliament for review during its autumn session. The issues included 2019 Monetary Policy priorities; support for small and medium-sized enterprises; proposed amendments to the Law on Metrology and the Law on Communications; suggestions for the 2019 State Budget; and the appointment and dismissal of civil servants. Parliament approved five resolutions, negotiated on international agreements, initiated the first discussion of a new bill, and discussed eight proposed amendments. The committee also created working groups to advise the government and the Bank of Mongolia on increases in the currency exchange rate and gas prices.

Today /page A2/
Tax reform discussion held
Representatives of the Ministry of Finance, General Taxation Office, Mongolian National Chamber of Commerce and Industry, Confederation of Mongolian Trade Unions, and businesses discussed a package of proposed tax reforms on Monday. Parliament's tax reform working group introduced 61 issues regarding the General Tax Law, ten issues on corporate income tax,  and six issues on personal income tax that were raised by citizens and corporations. Minister of Finance Ch. Khurelbaatar highlighted that the changes to the reform package, including the extension of the tax payment period from two to 24 months; strengthening the authority of tax officials to collect payment for overdue taxes and for other issues; failure to investigate taxpayers; and not limiting the length of tax evasion cases. The reforms include a fixed tax rate of 10 percent for individuals and entities with an annual income of less than 50 million MNT, with income tax at one percent. Fundamental changes to corporate income tax include reducing taxes on outbound transfer income to 15 percent, reducing deductibles on foreign investors' dividend yields to five percent, and reducing taxes on bank-based sourcing income to five percent.

The Official Gazette /page 2/
Ard Credit NBFI releases an IPO
The non-banking financial institution Ard Credit released an initial public offering (IPO) on the Mongolian Stock Exchange. The company plans to sell 25 percent of its shares (70 million shares) and to generate 4.9 to 5.4 billion MNT to finance its loan operations and the development of an Ard app. Fifty percent, or 35 million shares, will be traded at a fixed price of 70 MNT per share, and the remaining shares will be sold to strategic investors, by order, at 70 to 85 MNT per share. Stock orders are available through securities companies, the Ard app, and the ArdX app starting on February 18 and will conclude on March 1.  
The Century News /page 5/
The MSE's income decreased in 2018
Mongolian Stock Exchange (MSE) operations income reached 1.7 billion MNT in 2018, dropping by 10 percent compared to 2017. The main factor in the drop was the conclusion of government securities exchanges in November 2017. Government securities trading fees were 2.3 million MNT in 2018, while they were 600 million MNT in 2017. Industry analysts have highlighted that the trading of government securities on the MSE had a positive effect on benchmarking for corporate bonds and other products. The CEO of the MSE explained that the MSE started paying for the MIT system used by the London Stock Exchange in 2018, and its Oracle database license fee increased in 2018, which negatively affected its operations income in 2018.
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