(2022.09.02-ны өдрийн орчуулга)  Unofficial translation
LAW OF MONGOLIA

August 07, 2015                                                                              Ulaanbaatar city

ON PROMOTION OF ECONOMIC TRANSPARENCY

Article 1. Purpose of the Law

1.1.           The purpose of this law is to ensure procedural regimes for inpiduals and legal entities to specify the assets registered in the others' name, the hidden movable and immovable assets or equivalent other assets, concealed income earned or services rendered in the finance, tax and social insurance statements in an accurate, fair and transparent manner, and to report a restated balance sheet or re-submit to the customs authority and register newly in the state registration, and to be encouraged to enjoy the tax amnesty benefits or be dismissed once from taxes and any other responsibilities if inpiduals and legal entities have completed the above activities on a voluntarily basis.

Article 2. Scope of Law

2.1. This law applies to inpiduals and legal entities who are subject to the legal regulations to pay taxes and social insurance fees under the General Taxation law, the relevant tax law and the Social Insurance law, and to register assets and business engagements in the state registration according to the law on State Registration of Property Ownership Rights and other related property rights and the law on State Registration of Legal Entities, and to submit financial statements according to the law on Accounting.

2.2. This law shall not apply to inpiduals and legal entities that have not voluntarily disclosed, reported or submitted the assets and income within the time specified in Article 3.1 of this law.

Article3. Disclosure Period

3.1. The period for disclosing, filing, registering and reporting assets and income on a voluntary basis will end on February 20, 2016 starting from the effective date of this law.

/This paragraph was amended on December 24, 2015/

Article 4. Registration, Filing and Reporting Process

4.1. Within the framework of the law on Taxation and Social Insurance law, once an inpidual or legal entity has been registered in the tax office as a taxpayer, and in the social insurance as an employer, and has registered assets and business activities in the state registration and submitted a financial and tax statement for the period before April 1, 2015, and if they have been registered newly in or filed or reported to the relevant organization on a voluntarily basis within the term specified in this law even such inpidual or legal entity failed to register, file or report, and/or an inpidual and legal entity, who failed to register or report its assets and income as per the legislations, has registered newly or reported to the relevant organization prior to expiry of the implementation of this law,  any charges that would have been charged shall be dismissed "once" on historical non-compliances of registration or payment of taxes and social insurance fees or disclosure of assets and income as specified in the laws below:

4.1.1. Value Added Tax law;

4.1.2. General Taxation law;

4.1.3. Law on Social Insurance;

4.1.4. Law on State Registration of Legal Entities;

4.1.5. Law on Accounting;

4.1.6. Customs law;

4.1.7. Law on Administrative Liability.

4.2. Taxable goods, works, services, activities other than income /hereinafter referred to as "taxable items other than income"/ and taxable income earned by an inpidual or legal entity in the period before registration, declaration, or reporting of an inpidual and legal entity who have been voluntarily registered as a taxpayer or has disclosed or registered is assets and business engagements in the state registration, reported newly its financial and tax statements, or declared goods except for prohibited goods to the customs authority which are historically not declared pursuant to Article 4.1 of this law, shall not be subject to reimbursement of taxes, interests, penalties and any charges.

4.3. If an inpidual or legal entity has been newly registered in the social insurance as an employer, or  has voluntarily disclosed and reported the hidden or reduced wage fund or equivalent income which is subject to social insurance contributions in accordance with Article 4.1 of this law, the hidden or reduced income fines will be reimbursed and exempted from liability. The new social insurance contribution report submitted by the employer to the social insurance organization shall be considered as the initial social insurance report.

4.4. Provisions specified in Articles 4.1 and 4.2 of this law shall apply to inpiduals and legal entities who have voluntarily disclosed the hidden movable or immovable assets and income or assets registered in the other's name.

Article 5. Declaring Taxable Income and Taxable Items Other Than Income, and Reporting Income Subject to Social Insurance Contribution

5.1. If an inpidual and legal entity has concealed taxable income, taxable items other than income, and income subject to social insurance contribution within the term before April 01 2015 but has disclosed them on a voluntarily basis, and prepared and submitted balance sheet and financial, tax and social insurance statements to the relevant tax office and social insurance organization within the term specified in Article 3.1 of this law, such inpidual and legal entity shall be dismissed "once" on historical non-compliances of legal liability specified in Article 4.1 of this law.

5.2. Any financial and tax statements newly prepared and voluntarily submitted to the relevant customs, taxation and financial organizations, and any  declarations of goods re-submitted to the customs organization as specified in Article 4.1 of this law shall be considered as the beginning balance sheet and initial statement of an inpidual and legal entity, any taxable income and taxable items other than income that are newly and voluntarily reported and disclosed in these statements and declarations shall not be shall not be subject to reimbursement of taxes, interests, penalties and any charges.

5.3. As stipulated in Article 5.2 of this law, a list of taxes is provided below which will be covered for the purpose of amnesty:

5.3.1. Corporate income tax;

5.3.2. Personal income tax;

5.3.3. Immovable property tax;

5.3.4. Value added tax;

5.3.5. Excise tax;

5.3.6. Customs duty.

5.4. Taxable income and taxable items other than income except for those specified in Articles 5.1, 5.2, and 5.3 of this law shall not be subject to tax exemption.

Article 6. Miscellaneous

6.1. It is prohibited to file a criminal case, to impose an administrative liability or to carry out enforcement measures to an inpidual and legal entity on the ground of exemption as specified in Article 4.1 and 5.1 of this law.  

6.2. Taxable income, taxable items other than income, and wage fund or equivalent income subject to social insurance contribution, their sources, amount, price and costs specified in the information in relation to inpiduals and legal entities set out in Article 6.1 of this law and in the financial or tax or social insurance statements submitted or customs declarations re-submitted respectively shall be kept confidential and not be used as an evidence document.

6.3. In relation to the implementation of this law, an inpidual and legal entity is prohibited to report overpayments by types of taxes stipulated in the law and to create any receivables from state and local budgets.

6.4. The Government shall approve the implementation rules for this law.

Article 7. Validity of the Law

7.1. This law shall be entered into effect on August 07, 2015. 

THE SPEAKER OF THE STATE GREAT KHURAL OF MONGOLIA Z.ENKHBOLD