PARLIAMENT APPROVES BILL ON INCOME TAX

Ulaanbaatar /MONTSAME/ During its regular session on February 2, the Parliament approved the amendments to the Law on Personal Income Tax with 65.9 percent vote. The Parliament previously approved marginal tax bracket on April 14, 2017. Accordingly, the personal income tax increased from 10 to 25 percent in four brackets starting from January 1, 2018; however, the Parliament reached a decision to reamend the income tax considering the stable growth of State Budget revenue and expansion of tax base, as well as stable outlook of global commodity prices. With the amendments, the marginal tax bracket will be revoked to effective tax rate of 10 percent. The Government officials explain that the effective tax rate will help accelerate development of businesses, attract investment, create workplaces and increase household income. Furthermore, the law will also start implementing from January 1, 2018. In other words, the taxes paid in January will be refunded. In addition, the Parliament approved the bill on "Some measures to implement amendments to Law on Personal Income Tax". In relations to the approval of the bill, the Cabinet and budget managers of Ulaanbaatar city and aimags are ordered to increase budget revenue and financial sources. Kh.Aminaa