А. BACKGROUND

Mongolia received a credit from the International Development Association (IDA) for the Strengthening Fiscal and Financial Stability Project (SFFSP). The objective of the SFFS Project has been to contribute to the Government of Mongolia’s efforts to strengthen fiscal and financial stability and improve the quality of expenditure. The project is designed into five components: (A) Strengthening Macroeconomic and Fiscal Management; (B) Improving the Efficiency of Public Financial Management; (C) Enhancing Financial Sector Stability; (D) Strengthening the Social Protection System; (E) Project Management and Monitoring. For more details, please refer to the Project Appraisal Document Report No. PAD22691.  

Sub-Component A.2 aims at “Strengthening fiscal policy and planning” by improving the existing legal framework through reviewing the related fiscal laws and including new fiscal relations to address the inconsistencies in tax laws, introduce international best practices in the tax laws such as transfer pricing and base erosion and profit shifting (BEPS), and build comprehensive revenue forecasting and financial models for economic analysis of large-scale mega projects. Therefore, the Ministry of Finance (MOF) is responsible for the implementation of the Sub-Component A.2 of the SFFS project. 

The Government of Mongolia undertook the second phase tax reforms to promote investment climate, create more jobs, support small and medium sized enterprises, protect and balance the taxpayer rights and responsibilities and reduce the compliance cost significantly. Accordingly, the tax reform package currently effective since January 1, 2020 was approved by the Parliament on 22 March 2019. Also, the General Department of Taxation (GDT) launched the new tax administration integrated system in November 2019 to improve all aspects of tax administration operations.

A Research and Analysis Division was established under the Risk Management Department, the GDT in 2020 following the International Monetary Fund's recommendations on effective operations for revenue mobilization. The main function of the division is to conduct research and analysis on possible opportunities to increase tax revenues and identify appropriate measures to be implemented depending on the business industries. It is also responsible for providing the relevant tax information necessary for making effective policy decisions to the Ministry of Finance and the tax authority. 

In the coming years, the Research and Analysis Division is envisioned to conduct key analyses including analyses on tax compliance and policy gaps, expected tax revenue performance, tax revenue impact analysis on proposed tax policy changes, and overall tax environment analysis for the purpose of improving the research-based tax policy formulation and implementing international best practices.  

Given the Research and Analysis Division is a newly established unit, it currently lacks the necessary exertise and capacity to conduct the needed research studies in line with the international best practices. Therefore, it seeks to engage a dedicated consultant who would support them in conducting big data analysis, improving the quality of the current research and analysis, learning from the internationally recognized research studies, and improving the unit’s capacity.

B. OBJECTIVE OF THE ASSIGNMENT

The objective of the assignment is to provide support to improving the existing tax research capacity and implementing international best practices in the research work carried out by the Research and Analysis Division of the GDT.

С. SCOPE OF WORK

Within the scope of this assignment, the following tasks will be performed at the minimum:

1. Provide technical assistance to the various ongoing research and analyses on tax issues including tax policy, compliance gap analysis by tax types and analysis of revenue impacts of administration measures;
2. Prepare training materials and carry out training activities to help build and improve capacity on research and analysis as requested and agreed by the Client;  
3. Carry out monthly analysis on the expected tax revenue performance and assist in improving the revenue performance dashboard;
4. Provide recommendations and advice on improving the current research methodologies; 
5. Undertake any other tasks related to the activities above as reasonably requested by the Client.   

D. DELIVERABLES

Upon completion of the assignment, the national consultant will submit the following deliverables/outputs to the Client:

1. Completed research on tax policy and revenue impacts of policy and administration measures; 
2. Analysis on compliance gaps by tax types;
3. Monthly report on the expected tax revenue performance based on economic indicators and other factors;
4. Budget revenue and other economic impact analyses on specific tax policy proposals;
5. Analysis on the overall tax environment; 
6. Final report on technical recommendations provided on the research and analysis methodologies used by the Risk Management Department of the GDT; 
7. Capacity building, including documenting of processes and delivery of training; and
8. Monthly brief reports on the progress made on the tasks in the Section C evidenced by the relevant supporting documents. 

E. CONSULTANT’S QUALIFICATION/ SELECTION CRITERIA

Education: A suitable candidate should have a bachelor’s degree in a relevant field: finance, economics, accounting, business administration, or mathematics;

Experience: Candidate should have at least two years of professional experience in tax, finance or economics research and analysis. Knowledge of technical terms of tax and budget would be an advantage;

Language skills: Fluent written and spoken skills in English (at least iBT 85 score or IELTS 6.5 score);

Computer literacy: Be proficient in MS Office such as Word, Excel and PowerPoint, and have preferably skills for excellent web research and navigation skills; 

Other: Excellent analytical, organizational, communication and interpersonal skills with the ability to function effectively and collaboratively in a team environment; high integrity and accountability; and

Be able to work overtime if required.

F. SUPERVISION AND REPORTING

The Consultant will report directly to Director General of the Tax Policy Department, MOF and the Heads of the Research and Analysis Division (RAD) and the Risk Management Department (RMD), GDT and will work on a day-to-day basis with officers and national consultants of the GDT and the MOF on all matters related to the assignment. The Head of the RAD and Head of the RMD will meet regularly with the Consultant to review progress with the work program and to resolve any outstanding issues. 

The Consultant will be required to carry out his/her tasks in line with the approved Contract Implementation Plan (CIP) which will serve as a basis for measuring progress on desired outcomes and goals for the entire consultancy service. 

All information provided to the consultant will be regarded as confidential and information will not be shared with any outside individuals or organizations.

G. INSTITUTIONAL ARRANGEMENTS

The General Department of Taxation (RMD) will provide office space and will work with the consultant on a day-to-day basis. The consultant shall be provided with all necessary data and information to perform the tasks detailed in Section C. 

H. CONTRACT DURATION

The assignment is expected to commence in May 2022. The total duration of the consultancy service rendered is estimated to be 10 months. 

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