Relations between Mongolia and the European Union have entered a new phase with the Framework Agreement on Partnership and Cooperation coming into force and the much-anticipated opening of the EU Delegation in Mongolia. However, on Tuesday (5 December) the European Union published its first blacklist of tax havens, naming 17 territories including Mongolia.

According to Finance Minister Ch.Khurelbaatar, the EU has already  contacted his ministry over reforming the tax system and warned that since June Mongolia have been on their grey ‘watch list’. The EU has concluded that Mongolia needs to reflect transparency in legislation.  Currently, the Finance Ministry is working to implement legal actions to provide synergy with EU tax system standards. Furthermore, it has been announced that Mongolia will change its tax rules by 2019 to meet EU standards. Subsequently, the Finance Ministry is planning to amend the General Tax Law and to organise open discussion.