Tuesday, December 1, 2015

INVEST MONGOLIA AGENCY IMPLEMENTING THE LAW AND ASSISTING INVESTORS

The Investment Law establishes the Invest Mongolia Agency to implement the Investment Law, to issue tax stabilization certificates (Stabilization Certifcates) to qualified Investors and to make decisions with regard to investments by foreign SOE’s. In addition, the Invest Mongolia Agency has the mandate to assist investors – both foreign and domestic in planning their investments and to protect their interests and rights.

Organizational chart of Invest Mongolia Agency:



Main functions of Invest Mongolia Agency:
•  Promote Mongolia internationally;
•  Provide consulting and one-stop online services to foreign investors wishing to establish a business in Mongolia;
•  Support FDI and registering new foreign investments;
•  Promote investment climate & opportunities of Mongolia internationally;
•  Render support to investors in planning their investments;
•  Issue a Stabilization certificate to eligible investors;
•  Maintain  a  registry  of  the  stabilization certificate holders;
•  Render support in continued stable investment.
•  Together with the relevant state administrative authority, prepare tender documents and announce the tender, organize and evaluate it;
•  Enter, with the concessionaire and other entities, into a concession and such other related agreements as contracts of the concessionaire to obtain financing;
•  Adopt legally binding norms when specifically authorized to do so by legislation;
•  Provide methodological and expert assistance to other relevant authorities on matters related to granting and implementing concessions.

Investment Agreement with the Government of Mongolia
The  Investment Law provides any entity whose  investment value will exceed MNT 500 billion with an option to enter into an Investment Agreement with  the Government  of Mongolia. An  Investment Agreement may stipulate a longer stabilization period than the time frames set in the Investment Law. The Agreement may include the legal protection stipulated in the Investment Law, as well as tax stabilization terms and other financial incentives and benefits.
Other tax and non-tax investment incentives and benefits are available in accordance with the relevant law of Mongolia.

Additional incentives and benefits for investors
The Investment Law provides investors with a variety of other tax and non-tax benefits from the Government of Mongolia.The tax benefits may include exemption from taxes, preferential tax
treatments, accelerated depreciation and amortization that is deductible from taxable income, carrying forward of losses, and deduction of employee training expenses from taxable income.
The non-tax benefits may include longer land lease rights, residential permits for international investors and their families, expedited registration process if the investment involves a free economic zone or industrial complex, and financial  guarantees for foreign investment projects involving innovative technology.
In addition, equipment imported for construction purposes may be exempted from custom duties and value added taxes.

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