Ulaanbaatar
Parliament to consider lowering income tax rate for some companies
PoliticsUlaanbaatar /MONTSAME/ At its irregular meeting on Monday, the cabinet has declined its proposal on withdrawing draft amendments to the Law on Income Tax on Entities. Thereby, the Parliament will re-discuss the initial version of the draft.
The draft amendments sets out reducing the income tax rate for food, textile, clothes and construction material producing companies, which have annual sales income of less than MNT 1.5 billion, down to 1.0 percent.
If adopted, the law will alleviate the burden on small and medium enterprises and startup businesses, and increase a number of workplaces, claims the cabinet.
Pursuant to the draft, the law is to enter into force on January 1 of 2017.
