According to MiddleAsianNews, the exemption from taxes and customs duties makes the four free economic zones of Mongolia an important tool for attracting export-oriented investments.
💰Tax Advantages
There are four free economic zones operating in Mongolia: Altanbulag, Tsagaanuur, Zamiin-Uud, and the Khoshig Valley. Each of them operates under a special tax and customs regime, significantly reducing costs for importing equipment and organizing export-oriented businesses.
💎 The main advantage lies in the tax regime. Under Mongolian law, goods that arrive from abroad into the free zones are exempt from customs duties, VAT, and excise taxes. Additionally, goods and services produced in these zones by registered enterprises can also receive tax benefits.
👛 The conditions for exporting from these zones to international markets are also more favorable, making them particularly attractive for projects in areas such as manufacturing, logistics, trade, and tourism.
Geographical Advantage
Altanbulag is located close to the Russian border, Zamiin-Uud serves as the main gateway for Mongolia to China, and Tsagaanuur provides access to the west through Bayan-Ölgii. The Khoshig Valley, the newest and largest of the zones, is situated near Chinggis Khaan International Airport and is planned as a long-term center for logistics, trade, and other commercial activities related to the airport.
In conclusion, the four free economic zones of Mongolia continue to be an effective means of attracting foreign investments, combining tax incentives, customs advantages, and strategic access to the markets of Russia and China, as well as broader trade routes. Despite differences in project implementation depending on the zone, the government aims to improve the legal framework for free zones and the overall investment climate. This creates promising opportunities for exporters, manufacturers, and logistics companies that should be considered in the future.
