TAX AND SOCIAL INSURANCE REFORM PACKAGE SUBMITTED TO PARLIAMENT
June 4, 2025
On June 4, 2025, the Government of Mongolia submitted a package of draft amendments to the laws on taxation and social insurance to the State Great Khural. These legislative proposals aim to improve the tax environment, reform the social insurance system, and reduce the financial burden on citizens and businesses.
Key Amendments to the Social Insurance Laws:
Multi-tier Pension System: Introduces a base pension and voluntary private pension, allowing insured individuals to receive pensions from multiple sources.
Contribution Adjustment: Reduces employer contributions for occupational injury and disease insurance, and introduces a salary cap.
Exemption Measures: Employers hiring students, youth, or senior citizens may be exempted from paying social insurance contributions.
Flexible Contribution Terms: Enables flexible payment options for employees working under contracts or multiple jobs.
Supporting Elderly Employment: Introduces measures to increase labor market participation of senior citizens.
Key Amendments to the Tax Laws:
Improved Access to Advisory Services: Enhances access to tax advisory and information services for taxpayers.
Reducing Legal Disputes: Minimizes legal conflicts between taxpayers and tax/customs authorities and prevents tax violations.
Supporting Business Activity: Instead of fully freezing bank accounts of distressed taxpayers, partial account freezes will be allowed.
Stability in the Tax Environment: Encourages transparency and responsibility, ensuring long-term stability in the tax system.
The Government believes these reforms will enhance Mongolia’s competitiveness in the global business environment and ease the tax burden for entrepreneurs.