Editorial of the Mongolianviews: Will Ivanhoe Mines and Rio Tinto really pay 68% windfall profits tax?

According to the Minister of Finance Bayartsogt Sangajav, the miners agreed to pay all taxation of Mongolia including the controversial windfall profits tax. The minister added that the windfall profits tax law fulfilled its role and now it is time to move on and abolish the tax.
How many taxes are there in Mongolia?
There are Corporate tax, Customs duty (tax percent will depend on type of import), value added tax (ten percent), Excise tax, Mineral Royalty (five percent) and Mining license fee, Real Estate Tax, Water Tax, Land Use fee.Highest tax is Corporate tax which is twenty five percent.
According to Mongolian Corporate tax law passed in 2006, "taxable income of 0-3.0 billion Tugrigs is taxed at the rate of ten percent and any income exceeding 3 billion Tugrigs, it it 300 million Tugrigs plus twenty five percent tax.
Production of the Oyu Tolgoi mine will not start at least five or six years until mining infrastructure building is completed. That will be over Jan 1, 2011 when the Windfall Profits tax law is expected to be abolished.
It is very likely that the miners will not pay the windfal tax as production of the Oyu Tolgoi mine might begin by 2015. It is also questionable if the Khural will agree with this scenario and abolish the tax until the tax is substituted with other taxes or increased Royalty tax rate.
We will wait and see when the Khural starts by next week?




Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic