Outline of the Project

Project Name

Project for the New Tax Law Enforcement by Strengthening Capacity of Implementation of Mongolian Tax Administration

Country

Mongolia

Date R/D Signed

july 30, 2020

Project Site

Mongolia

Term of Cooperation

From October 1, 2020 to September 30, 2023

Implementing Organization

General Department of Taxation

Background

JICA implemented the "Project for Enhancing Tax Collection Operation and International Tax Issues of Mongolian Tax Administration Phase 2" (2017-2020) to support the development of systems and infrastructure, especially in the areas of international taxation and collection, in order to support Mongolia's fiscal stability. Within the project, JICA helped formulate a series of tax law amendments (covering the General Law on Taxation, the Corporate Income Tax Law, and the Individual Income Tax Law), referred to as the second round of tax reforms in the country. These amendments were passed by the extraordinary session of the Diet in March 2019, and began to take effect in January 2020. The revised tax laws were formulated based on Japan's experience and adapted to the current situation in Mongolia. Asset investigations, asset seizures, asset valuation, asset previews, custody of assets subject to public auction, public auction procedures, and liquidating distribution are all tasks that have become the responsibility of the General Tax Authority (formerly handled by courts) as a result of the law amendments. Since these tasks must be implemented in regional areas as well as metropolitan areas of Mongolia, there is an urgent need for staff across the country to acquire appropriate knowledge and practical skills.

In addition, through the revised tax law, the international taxation system must be adjusted in line with OECD rules and core staff must be trained in accordance.

Although the number of tax audits to overseas transactions has been increasing, the number of transfer pricing audits is still limited. Tax administration in Mongolia must be improved to accommodate the tax law amendments, and GDT must be able to respond appropriately to changes in related operations, as well as actively disseminate information and respond positively to the voice of taxpayers.

The Overall Goal

Proper and fair tax administration for strengthening revenue base is enhanced.

Project Purpose

Tax administration based on the new tax law is approproately operated.

Output

1. Capacity for tax debt collection management is strengthened.
2. Tax audit on internatinoal taxation is effectively conducted.
3. Proper taxpayer service for the new tax law is promoted.

Project Activities

1-1	Review existing manuals and formats of tax debt management and improve from a practical aspect.
1-2	Review the current training guideline and Activity 1-1, and prepare a plan for personnel training on tax debt collection by position.
1-3	Prepare necessary training materials and conduct trainings (e.g. online trainings, regional trainings at local centers).
1-4	Support setting up and managing a task force specializing in difficult cases on tax debt collection for accumulating knowledge.

2-1	Review existing notices etc, and prepare necessary administrative guidelines for operation relating to international taxation introduced by the new tax law.
2-2	Review existing training curriculum and materials, and improve them to be more practical.
2-3	Conduct On the Job Trainings (OJT) utilizing materials updated by Activity 2-2.
2-4	Share audit cases of international taxation conducted in Mongolia.
2-5	Develop effective methods for an industry-classified audit and share knowledge.

3-1	Consider a medium-term plan for promoting taxpayer services.
3-2	Review and draft an action plan by year for raising understanding on tax debt collection and international taxation changed by the new tax law.
3-3	Examine specific targets and medias according to Activity 3-1 and 3-2, and prepare proper contents and tools.
3-4	Conduct appropriate measures based on Activity 3-3 in collaboration with relevant ministries and organizations. (e.g. seminars by industry)

Inputs

[Japanese side]

Experts, Training in Japan, Training in Mongolia, Online Learning Management System

Inputs

[Mongolian side]

Project Director, Project Manager, Working Groups, Project Office etc.