The Mongolian Cabinet has approved an amendment to the parliamentary resolution and accompanying bills on a package of measures to protect the health and income of people, preserve employment and stimulate the economy during the Covid-19 pandemic. Accompanying legislation include bills on a raft of financial exemptions; these include: tax reductions and exemptions for corporate income, exemptions for tax penalties and fines, tax exemptions for individual income, exemptions from custom taxes, exemptions from social insurance fee and others.
Therefore, all measures in the stimulus packages have been extended from 1 October to the end of 2020. The following can be noted:
-all entities and companies are exempt from paying social insurance contributions for six months from 1 April until 1 October. However, the taxes will be cut by 50 percent until end of 2020.
-enterprises with revenues of less than MNT 1.5 billion are entitled to exemption of corporate tax.
– The Child Benefit Allowance of MNT 20,000 for children aged under 18 is to be raised to MNT 100,000.