In Mongolia, tax and social security contributions remain key obstacles for self-employed workers and micro, small, and medium enterprises (MSMEs) in transitioning to the formal economy. The Government of Mongolia is planning to amend the Law on Supporting Small and Medium Enterprises and Services, with a focus on exploring new ways to support MSMEs through tax and social security policies.
To this end, the national consultant reviewed international experiences-including social security contribution, tax concessions, exemptions, and simplified schemes-and provided recommendations based on lessons learned.
© ILO Mongolia
During the virtual meeting, Ms Gerelzaya, Director of the Policy Coordination Department, highlighted Kazakhstan's use of the MCI index to define MSMEs status as an interesting example for possible inclusion in the law. She also noted the relevance of the South Korean approach, where the number of employees does not determine MSME status.
Mr. Munkhbayar, a working group member, noted the importance of prioritizing development directions while proposing a mono-tax approach for targeted sectors.
At the meeting at MNCCI, Ms Saruul, General Secretary of the MNCCI, emphasized the survey's value, particularly expanding social security coverage. She also emphasized that the MNCCI, as the employers' representative, would advocate for this key recommendation during discussions on the draft law supporting SMEs.
