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You may recall that Mongolia was recently placed on the European Union “Blacklist” of overseas tax havens, making it harder for EU companies to do business in Mongolia.
Mongolia lost no time petitioning the EU and the various constituent companies to quickly remove Mongolia from the blacklist. Mongolia has made clear it is willing to “Collaborate on developing good tax governance” and supports transparency and improved information sharing, and emphasized the role of the Partnership and Cooperation Agreement between Mongolia and the EU (effective November of 2017).
As part of it’s push to be removed from the Blacklist, Mongolia submitted an official request to join the Global Forum on Transparency and Exchange of Information for Tax Purposes. Mongolia also implemented the Inclusive Framework on Base Erosion and Profit Shifting promoted by the OECD.
Those efforts appear to have paid off with the EU seemingly set to remove Mongolia from the Blacklist. Though the move is not final, it is expected to be debated and approved the week of Monday January 22, 2018.
However, Mongolia is not completely in the clear, and will likely be moved to a less severe “Grey List” of problematic countries. Even so, the move off the Blacklist is clearly a positive move for foreign investment in Mongolia.