(2022.11.29-ний өдрийн орчуулга)                                  Unofficial translation

LAW OF MONGOLIA

October 3, 2013                                                                                        Ulaanbaatar city

ON INVESTMENT

CHAPTER ONE

GENERAL PROVISION

Article 1.Purpose of the law

1.1.The purpose of this Law is to protect the legal rights and interests of investors in the territory of Mongolia, to establish a general legal guarantee for investment, to promote investment, to stabilize the tax structure, to determine the power of state agency related to investment, rights, and duties of investors and to regulate other relations pertaining to investment.

Article 2.Legislation on Investment

2.1.The legislation on investment shall consist of the Constitution of Mongolia, the General Law on Taxation, this Law, and other legislative acts enacted in conformity with these.

2.2.If an international treaty, to which Mongolia is a party, provides otherwise than this Law, then the provisions of the international treaty shall prevail.

Article 3.Definitions of terms of the law

3.1.The terms used in this Law shall have meanings as follows:

3.1.1."investment" means the tangible and intangible asset that is invested into  the share capital and reflected in the financial statement of a for-profit entity operating in the territory of Mongolia;

3.1.2."investor" means a foreign and domestic investor that invests in Mongolia;

3.1.3."foreign investor" means a foreign legal entity or individual /a foreign citizen or stateless person who is a non-resident in Mongolia and a Mongolian citizen residing permanently in a foreign country/ that invests in Mongolia;

3.1.4."domestic investor" means a legal entity or individual registered in Mongolia /a Mongolian citizen and a foreign citizen or stateless person who resides permanently in Mongolia/ that makes an investment in Mongolia;

3.1.5."business entity with foreign investment" means a business entity incorporated according to the legislation of Mongolia and not less than 25 percent of the total share capital is held by a foreign investor, and the investment amount by each foreign investor equals or more than USD 100,000 or its equivalent in Mongolian tugriks;

3.1.6."representative office of a foreign business entity" means a person that has no legal entity status and was established in Mongolia by a foreign legal entity for the purpose of having representation based on a power of attorney;

3.1.7."tax structure" means a set of legal regulations on determining the types, rating of taxes specified in the applicable laws and their imposition and payment;

3.1.8."stabilization of tax rate and amount" means maintaining the tax rate and amount without increasing it as provided in Article 13.4 of this Law, or decreasing it during the effective period of tax rate and amount stabilization certification;

3.1.9."tax rate and amount stabilization certification" means a certification /hereinafter referred to as a "Stabilization Certification"/ issued by an authorized body for the purpose of stabilizing the rate and amount of tax and fee specified in this law, to an investor legal entity that fulfills the requirements specified in Article 16.1 of this law;

3.1.10."stabilization certification holder" means a legal entity registered in Mongolia, which was issued a stabilization certification as specified in this law;

3.1.11."foreign state-owned legal entity" means a legal entity which 50 and more percent of its issued shares are directly or indirectly owned by the state of a foreign country;

3.1.12."common interested person" means the party specified in Article 99.1 of the Company Law.

Article 4.Scope of the application of the law

4.1.This law shall apply to the investments which are made by foreign and domestic investors in the territory of Mongolia.

4.2.Investors may invest into the sectors, industries and services except as otherwise prohibited by legislation of Mongolia.

4.3.A foreign state-owned legal entity may invest upon obtaining permit pursuant to Article 21.1 of this Law.

4.4.Foreign and domestic investors shall conduct activities in Mongolia upon registration to state registration in accordance with the Company Law, Law on State Registration of Legal Entities and other relevant legislation.

4.5.This law shall not apply to the investments from state and local budgets into the state agencies and offices, as specified in the Law on Procurement of Goods, Works and Services with State and Local Funds.

4.6.This law shall not apply to donations or free aid by international or non-governmental organizations, private business entities, or individuals without commercial conditions.

4.7.Article 20 of this law shall not apply to entering into an investment agreement in the nuclear energy sector, and the relations shall be regulated under the Law on Nuclear Energy.

Article 5.Forms of investment

5.1.Investments in Mongolia shall be implemented in the following forms:

5.1.1.an investor may establish a new business entity solely or jointly with other               investors;

5.1.2.an investor may purchase shares, bonds, and other types of securities;

5.1.3.to invest by consolidating or merging companies;

5.1.4.to enter into a concession, production sharing, marketing and management and other contract;

5.1.5.to invest in forms of financial leasing or franchise;

5.1.6.any other investment forms which are not prohibited by other laws.

CHAPTER TWO

GENERAL LEGAL GUARANTEE FOR INVESTMENT

Article 6.General legal guarantee for investment

6.1.An investor shall have a right to receive tax and non-tax incentives related to support investment promotion.

6.2.The State shall provide an investor with a guarantee of ensuring the stability of the tax rate by issuing a stabilization certification to the investor or by entering into an investment agreement with the investor as specified in this law.

6.3.It is prohibited to illegally confiscate an investor's asset in the territory of Mongolia.

6.4.Properties of the investors may be mobilized only for the public interest and on the condition of full compensation of the mobilized properties in accordance with the procedures specified in the law.

6.5.Unless otherwise provided in the international treaties which Mongolia is a party, compensation for the mobilized assets as specified in Article 6.4 of this Law shall be evaluated at the market rate of the assets when it was mobilized or notified to the investor or to the public, and shall be paid together with the price.

6.6.Mongolia shall protect intellectual properties owned by the investors as specified in the applicable laws.

6.7.On the basis of fully fulfilling the obligation to pay taxes in the territory of Mongolia, an investor shall have the right to transfer the following assets and income to foreign countries without being obstructed:             

6.7.1.profits from business activities and dividends;

6.7.2.royalty for the use of their intellectual property, work and service charges;

6.7.3.payment of principal amounts and interests of a loan granted from overseas;

6.7.4.distributed assets after the liquidation of a business entity;

6.7.5.other properties gained or owned within the legal framework.

6.8.When an investor is transferring its assets out of Mongolia as specified in Article 6.7 of this law as a monetary asset, the investor shall be entitled to convert into any international freely convertible currency.

6.9.Unless it is provided by law or in the international treaties which Mongolia is a party, an investor is entitled to select an international or domestic arbitration to settle any dispute which may arise regarding the contract which entered into with the state agency.

6.10.The amendments to this law shall be decided by above two-thirds votes of the members of the State Great Khural.

/This paragraph was annulled according to the law as of April 9, 2022/

Article 7.Rights and duties of an investor

7.1.Investors shall have the following general rights:

7.1.1.to select whether to invest, investment forms, amounts, and areas or regions of investment and to make relevant decisions independently;

7.1.2.to invest into one or more sectors, projects, industries and operations;

7.1.3.to import goods, works, and services from abroad within the framework of implementation of the investment project and to export produced products, works and services;

7.1.4.to satisfy their own foreign currency needs by purchasing or selling foreign currencies through the banks and non-banking financial institutions registered in Mongolia;

7.1.5.to dispose of their assets and to transfer to and receive from abroad its lawful revenue and income;

7.1.6.to manage or participate in the management of business entity with investment or to transfer their rights and duties to other persons according to the relevant legislation;

7.1.7.to request for their rights to use financing, loans, assistance, land and natural resources and to have their requests resolved;

7.1.8.to receive state services equally;

7.1.9.other rights specified in legislation.

7.2.Investors shall have the following general duties besides to their basic duties to conduct their business operations as provided by legislation of Mongolia:

7.2.1.to ensure that the products produced and works and services provided by them comply with national and international standards;

7.2.2.to carry out the bookkeeping in accordance with international accounting standards;

7.2.3.to provide the tax authorities and other state agencies with the required information upon their request within the specified time to enable them to implement their functions;

7.2.4.to conduct investment activities that respect the interests of consumers, are friendly to the environment, and support human development;

7.2.5.to pay the social and health insurance premiums of their employees in accordance with the relevant legislation;

7.2.6.to improve the knowledge, experience, professional skills of their employees, to focus on the improvement of the management methodology and to introduce the good governance principles;

7.2.7.to respect the national heritage and traditions of the Mongolian;

7.2.8.as a legal entity holding the stabilization certification, to invest as specified in Article 16.2 of this law;

7.2.9.other duties specified in the applicable laws.

CHAPTER THREE

POWER OF THE STATE AGENCIES ON INVESTMENT

Article 8.Power of state central administrative body in charge of investment

8.1.The state central administrative body in charge of investment shall exercise the following power:

8.1.1.to ensure and monitor implementation of the investment legislation;

8.1.2.to prepare proposals concerning the investment policy and the sectors and areas, where investments need to be promoted and delivered to the Government for decision;

8.1.3.to issue the authorization specified in Article 21.1 of this Law;

8.1.4.to collect the following investment-related data from the Central Bank and the state administrative bodies in charge of employment, taxation, customs, social insurance and foreign citizen affairs semi-annually and annually, and to issue investment statistics accordingly:

8.1.4.a.investment sources and amounts;

8.1.4.b.payment of taxes;

8.1.4.c.number of jobs/ workplaces;

8.1.4.d.residence permits of foreign citizens;

8.1.4.e.number of foreign-invested entities;

8.1.4.f.goods and services imported by direct investments

8.1.4.g.other rights provided for by the laws.

/This article was annulled according to the law as of May 14, 2015/

Article 9.Rights and duties of the state central administrative body in charge of investment

/This title of this article was amended according to the law as of November 12, 2021/

9.1.The state central administrative body in charge of investment shall implement functions to attract investment, promote the investment environment and provide services to investors.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

/The modification to this paragraph was made according to the law as of July 21, 2016/

9.2.The state central administrative body in charge of investment  shall have the following rights and duties:

/The amendment to this paragraph was made according to the law as of November 12, 2021/

9.2.1.to ensure and monitor the implementation of legislation on investment;

9.2.2.to develop proposals on investment policy, investment promotions and measures, and to present them to the Government for the approval;

9.2.3.to issue a permit specified in 21.1 of this Law;

9.2.4.to obtain the following information from the central bank, state administrative bodies in charge of employment, tax, customs, social insurance, registration, and immigration related to investment on a semi-annual and annual basis and produce investment statistical report:

/The amendment to this sub-paragraph was made according to the law as of July 21, 2016/

9.2.4.a.source and amount of investment;

9.2.4.b.tax payment;

9.2.4.c.number of jobs;

9.2.4.d.residence permit of a foreign citizen;

9.2.4.e.number of business entities with foreign investment;

9.2.4.f.the amount of investment made by importing goods and services.

9.2.5.to implement comprehensive activities to attract investment;

9.2.6.to provide support and services for the protection of the legal interest of investors;

9.2.7.to promote the legal environment of investment and favorable conditions of the domestic market to investors;

9.2.8.to support the investment planning of investors;

9.2.9.to provide consulting and one-stop online services regarding other state services related to investment;

9.2.10.to issue a stabilization certification to the investors meeting the requirements specified in Article 16 of this law;

9.2.11.to monitor the stabilization certification holder's investment activities in conformity with the business plan, technical and economic feasibility study and the investment completion term provided in Article 16.2 of this Law;

9.2.12.to obtain the financial statement of a stabilization certification holder from the state administrative body in charge of tax, or from the legal entity if required, to implement its duties specified in Article 9.2.11 of this law;

9.2.13.to carry out the state registration of the stabilization certification holders;

9.2.14.to support continued stable investment.

/This section was amended by the law as of May 14, 2015/

9.3.A non-staff council shall be set up to issue a conclusion on the matters specified in Article 9.2.6 of this law under the decision by the Government member in charge of investment.

9.4.The Government member in charge of investment shall determine the and activity regulation of the council specified in Article 9.3 of this law.

9.5.A representative to protect interests of the investors shall be appointed to the council specified in Article 9.3 of this law.

CHAPTER FOUR

INVESTMENT PROMOTIONS

Article 10.Types of investment promotions

10.1.The investment promotions for investors shall consist of tax and non-tax incentives.

Article 11.Tax incentive for investment

11.1.Tax incentives shall be provided to investors in the following types:

11.1.1.to exempt from taxes;

11.1.2.to discount tax;

11.1.3.to calculate the depreciation expense to be deducted from the taxable income under the accelerated method;

11.1.4.to calculate the loss to be deducted from the taxable income by a loss carryforward;

11.1.5.to deduct the employee training expense from the taxable income.

11.2.In the following cases, imported technical equipment may be exempted from the customs duty and value added tax rate may set to zero-rate during the construction works:

11.2.1.to build a factory for construction materials, petroleum and agricultural plant and products for exporting;

11.2.2.to build a factory for products that contained nano, bio and innovation technologies;

11.2.3.to build a power plant and railway.

11.3.The incentives for investors specified in Articles 11.1 and 11.2 of this law shall be regulated by legislation on taxation.

Article 12.Non-tax incentive for investment

12.1.The non-tax incentives may be provided to investors in the following forms:

12.1.1.to put land possession or use for up to 60 years on the basis of a contract and to renew the contract duration once for up to 40 years with the contract's primary conditions;

12.1.2.to promote the investors who are to invest into the activities in free zones, industrial and technology park and to serve with a simplified regime of registration and checkpoint;

12.1.3.to support the implementation of development projects in the infrastructure, industry, science and educational sectors, to increase the number of foreign workforces and specialists, to exempt them from employment fees and to issue the required permits at a simplified regime;

12.1.4.to support the financing of the innovation projects and to guarantee the financing to produce export-oriented innovation products;

12.1.5.to grant foreign investors, who have made investment in Mongolia, and their family members with multiple visas and residential permits under the applicable legislation;

12.1.6.other promotions specified in the applicable laws.

12.2.Non-tax investment incentives shall be regulated in accordance with the Law and Land, the Law on Free Zones, the Law on Legal Status of Industrial and Technology  Parks, the Law on Innovation and the Law on Labor Force Migration and other relevant legislation.

/The amendment to this paragraph was made according to the law as of December 24, 2021/

CHAPTER FIVE

STABILIZING THE INVESTMENT ENVIRONMENT

Article 13.Tax rate and amount stabilization

13.1.The rate and amount of taxes to be paid by the legal entity, who is to implement an investment project, shall be stabilized by issuing stabilization certifications to the person specified in Article 13.5 of this law.

13.2.The stabilization certifications shall become effective from the date of their issuance and the tax rate and amount shall be stabilized during the entire period of validity of the stabilization certifications.

13.3.Stabilization of the tax rate and amount shall be regulated only as specified in this law and the investment contract specified in this law except specified otherwise in Article 4.7 of this law.

13.4.If there is an amendment made in the tax legislation to reduce the rate or amount of taxes and payments specified in Article 14.1 of this Law during the validity period of the stabilization certification, the legal entity holding the stabilization certification shall be subject to the amendment, however if there is a change to increase it, it shall not be subject to the amendment.

13.5.The stabilization certification shall be issued to the following investors depending on the organization form of the implementation of investment project:

13.5.1.if the investment project is to be implemented solely by one legal entity, the stabilization certification shall be issued to that legal entity;

13.5.2.if the investment project is to be implemented by two or more related legal entities, to their parent company.

13.6.Tax rates and amount for the production, import and sale of tobacco and alcohol shall not be stabilized.

Article 14.Types of the taxes to be stabilized

14.1.The following tax, its percentage and amounts shall be stabilized under the stabilization certifications during their validity period:

14.1.1.corporate income tax;

14.1.2.customs duty;

14.1.3.value-added tax;

14.1.4.mineral resource royalty.

14.2.The tax stabilization provided for in Article 14.1.4 of this Law issued for the purpose of using the main mineral deposit shall not include royalties for mineral products extracted from derivative deposits.

/This paragraph was added according to the law as of November 10, 2016/

Article 15.Stabilization certification

15.1.The template of the stabilization certification shall be approved by the government member in charge of investment.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

/The amendment to this paragraph was made according to the law as of May 14, 2015/

15.2.The following information shall be reflected in the stabilization certification:

15.2.1.name and address of the stabilization certification holder legal entity;

15.2.2.state registration and registration number of the stabilization certification holder legal entity;

15.2.3.name, state registration number and registration number of the legal entity specified in Article 13.5.2 of this law;

15.2.4.name of the investment projects to be implemented;

15.2.5.date of issuance and validity term of the stabilization certification;

15.2.6.tax, its rates and amounts specified in Article 14.1 of this law.

15.3.It is prohibited to sell, pledge or gift a stabilization certification.

15.4.When the legal entity holding the stabilization certification is reorganized in the form of consolidation, merger, or conversion, the stabilization certification shall be transferred to the newly established or successor legal entity if the following requirements are met:

15.4.1.if the legal entity continues the investment project;

15.4.2.if the investment project meets the criteria specified in Article 16.1 of this law.

Article 16.Criteria and duration for period of a certification of stabilization

16.1.A certification of stabilization shall be issued to the investor whose project is to be carried out in Mongolia meets the following criteria:

16.1.1.the total investment amount specified in the business plan and the technical and economic feasibility study reached the amount specified in Articles 16.2 and 16.3 of this law;

16.1.2.to get done the environmental impact assessment if required by law;

16.1.3.to create stable workplaces;

16.1.4.to introduce high technology.

16.2.A certification of stabilization shall be issued to the following sectors with the period stated below:

16.2.1.to the mining extraction, heavy industry, and infrastructure sector:

16.2.2.to other sectors except the sectors specified in Article 16.2.1 of this Law:

16.3.The validity period for certification of stabilization specified in Article 16.2 of this law shall be issued 1.5 times longer for the investors who are to implement the following projects:

16.3.1.to produce import substitute and export-oriented products, which are significant to long term sustainable development of the socio-economic sector of Mongolia, estimated to invest more than MNT 500 billion according to the Central Bank official rate as of the date of approval of the technical and economic feasibility study and requires more than three years of construction works, regardless of any location and sector;

16.3.2.the investor legal entity in conformity with the criteria specified in Article 16.1 of this law conducts value added processing industry and exports its basic products.

16.4.The investment completion period shall be considered commencing from the issuance date of the certification of stabilization.

16.5.The legal entity that holds a certification of stabilization may request the state central administrative body in charge of investment to extend investment completion period specified in Article 16.2 of this law; and if the request is deemed well-grounded, the period may be extended for two years.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

Article 17.Applying for certification of stabilization

17.1.An investor legal entity in conformity with the criteria specified in Article 16.1 of this law may apply for a certification of stabilization  to the state central administrative body in charge of investment.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

17.2.The following documents shall be enclosed with the request for a certification of stabilization :

17.2.1.a statement by the applicant regarding its satisfaction of the criteria specified in the Article 16.1 of this law;

17.2.2.introduction of the applicant legal entity, the state registration certification, if specified in the law, a copy of the documents of a permit issued by a competent authority;

/In this sub-paragraph, the part "license and other certification" was amended as "the documents of a permit" according to the law as of  June 17, 2022, and it shall enter into force on January 1, 2023/

17.2.3.information on the introduction of new high technology;

17.2.4.if provided by law, the general environmental impact assessment;

17.2.5.if the investment amount is up to MNT 10 billion, the business plan; and if the investment amount is MNT 10 billion and above the technical and economic feasibility study.

Article 18.Issuing  a certification of stabilization

18.1.The state central administrative body in charge of investment shall decide whether to issue a certification of stabilization based on the criteria provided by law within 30 days after receipt the request for a certification of stabilization on the basis of the conclusion by the council specified in Article 9.3 of this law. This period may be extended for 15 days if required.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

18.2.If the state central administrative body in charge of investment decides to issue the certification of stabilization , it shall write the related information on the certification of stabilization and issue the certification to the project-implementing legal entity registered in Mongolia.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

18.3.In case if the investment project does not meet the criteria specified in Article 16.1 of this law or the submitted documents are incomplete, the state central administrative body in charge of investment shall deliver a written response on rejection of issuance of the certification of stabilization with the relevant reasons within the term specified in Article 18.1 of this law to the investor.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

18.4.The state central administrative body in charge of investment shall amend the certification of stabilization at the request of the legal entity holding the stabilization certification for each amendment in the information specified in Article 15.2 of this law.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

Article 19.Revoking a certification of stabilization

19.1.The state central administrative body in charge of investment shall revoke the certifications of stabilization with the following grounds:

/The amendment to this paragraph was made according to the law as of November 12, 2021/

19.1.1.the validity period of the certification of stabilization has expired;

19.1.2.if the stabilization certification holder has requested or is liquidated;

19.1.3.if the stabilization certification holder has completely withdrew and transferred its investment in Mongolia out of the territory of Mongolia;

19.1.4.if it is established that the stabilization certification holder obtained the certification of stabilization by submitting illegal documents;

19.1.5.if the right successor does not meet the requirements specified in Article 15.4 of this law;

19.1.6.if violated Article 15.3 of this Law;

19.1.7.if it is established that a foreign state owned entity was not issued with the permit specified in Article 21.1 of this law;

19.1.8.the stabilization certification holder did not invest withing the term specified in Article 16.2 of this law;

19.1.9.the stabilization certification holder has entered into an investment contract.

19.2.The state central administrative body in charge of investment shall inform its decision to revoke the certification of stabilization specified in Article 19.2 of this law within five business days to the stabilization certification holding legal entity and to the state administrative body in charge of taxation.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

Article 20.Investment contract

20.1.The Government may enter into an investment contract with the investor who is to invest more than MNT 500 billion at the investor's request for stabilizing the environment of activities.

20.2.The Government member who was authorized by the Order of Prime Minister of Mongolia shall enter into investment contracts with investors.

/The amendment to this paragraph was made according to the law as of May 14, 2015/

20.3.An investment contract may be made for the term not less than specified in Articles 16.2 and 16.3 of this law.

20.4.Unless otherwise provided by laws, an investment contract may include the conditions for providing a legal guarantee specified in this Law to the investor, stabilizing the tax structure and regulative and financial supports.

20.5.If the legal entity holding the stabilization certification with an investment of more than MNT 500 billion made a request, an investment contract may be concluded with the relevant investor.

20.6.The Government shall approve the regulation on entering into investment contracts.

20.7.Types of stabilization tax specified in Article 20.4 of this law shall mean as specified in Article 14 of this law.

/This paragraph was added according to the law as of November 10, 2016/

CHAPTER SIX

INVESTMENT BY A FOREIGN STATE OWNED LEGAL ENTITY

Article 21.Investment by a foreign state-owned legal entities

21.1.Permit shall be obtained if foreign state-owned legal entities holds 33 or more of the total issued shares of Mongolian legal entities operating in the following fields:

21.1.1.mining;

21.1.2.bank and finance;

21.1.3.the media and communications.

Article 22.Requesting for a permit and deciding the request

22.1.A legal entity specified in Article 21.1 of this law shall request for a permit to the state central administrative body in charge of investment directly or through a representative office and authorized representative in Mongolia and shall enclose the following documents to the request:

/The amendment to this paragraph was made according to the law as of November 12, 2021/

/The amendment to this paragraph was made according to the law as of May 14, 2015/

22.1.1.a notarized copy of the certification of incorporation of the applicant issued by a competent authority of the applicant's country;

22.1.2.references from the registration authority concerning the applicant, its common interested persons, the executive management of the entity specified in Article 21.1 of this Law, that covers the last two years;

22.1.3.the preliminary transaction between a foreign state-owned entity and a Mongolian entity, its type and conditions, the parties to the transaction, shares to be sold percentage of shareholding, contract price, the charter of the legal entity, and if the is an agreement on changing the management, the information concerning to it;

22.1.4.financial statements and clarifications to financial statements of the foreign state-owned legal entity and the Mongolian business entity;

22.1.5.the investment plan and business project to be implemented by the applicant in Mongolia.

22.2.The documents specified in Article 22.1 of this law shall be in Mongolian language.

22.3.The state central administrative body in charge of investment may demand required documents other than those specified in Article 22.1 of this law from the applicant while reviewing the submitted application documents.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

/The amendment to this paragraph was made according to the law as of May 14, 2015/

22.4.The state central administrative body in charge of investment shall receive the application that meets the requirements specified in Article 22.1 of this law and review whether the following situations may occur:

/The amendment to this paragraph was made according to the law as of November 12, 2021/

/The amendment to this paragraph was made according to the law as of May 14, 2015/

22.4.1.whether any of the investor's activities or investment natures are contrary to the concept of National Security of Mongolia;

22.4.2.whether the applicant meets the conditions to adhere to legislation and the established business norms of Mongolia;

22.4.3.whether the investment has a nature to restrict competition in the relevant sector or create dominance in the sector;

22.4.4.whether the investment has a serious and adverse impact on the budget revenue and other policies and activities of Mongolia.

22.5.The state central administrative body in charge of investment may obtain opinions and conclusions from relevant organizations when verifying whether the circumstances specified in Article 22.4 of this Law have occurred. In this case, the organization shall study the issue within 30 days and submit its opinion and conclusion, and if it is not submitted within that period, it shall be deemed as not having a special opinion.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

/This paragraph was added according to the law as of May 14, 2015/

22.6.The state central administrative body in charge of investment shall decide within 45 days after receipt of the application specified in Article 22.1 of this law.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

/The amendment to this paragraph and the number was made according to the law as of May 14, 2015/

22.7.The state central administrative body in charge of investment shall notify the applicant of the decision specified in Article 22.6 of this law within five business days after its decision.

/The amendment to this paragraph was made according to the law as of November 12, 2021/

/The amendment to this paragraph and the number was made according to the law as of May 14, 2015/

CHAPTER SEVEN

MISCELLANEOUS

Article 23.Liability for the violators of the law

23.1.In case the actions of a civil servant violating this Law does not constitute a criminal nature, they shall be subject to liability specified in the Law on Civil Service.

23.2.Any person or legal entity violating this Law shall be subject to liability specified in the Criminal Law or the Law on Violations.

/This article was modified according to the law as of May 14, 2015/

Article 24.Entry into force of the law

24.1.This Law shall enter into force on November 1, 2013.

CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA Z.EHKNBOLD