A. BACKGROUND  

Mongolia has been implementing the Strengthening Fiscal and Financial Stability (SFFS) Project. The objective of the SFFS Project is 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: (i) Strengthening Macroeconomic and Fiscal Management; (ii) Improving the Efficiency of Public Financial Management; (iii) Enhancing Financial Sector Stability; (iv) Strengthening the Social Protection System; (v) Project Management and Monitoring. The objectives are to strengthen fiscal responsibility and implementing relevant policy measures; improve fiscal discipline; strengthen the resiliency of the banking system; improve public expenditure quality in social protection, and provide support for Project implementation, coordination, monitoring and evaluation, including, inter alia, audit arrangements, reporting requirements, procurement and financial management activities respectively. For more details, please refer to the Project Appraisal Document Report No. PAD2269.

The overall objective of Component A of the Project is to strengthen fiscal responsibility and support the implementation of relevant policy measures toward (a) improving the quality of expenditure management, (b) strengthening macroeconomic and budget policy-making capacity, and (c) improving regulatory processes. Within this component there are also specific activities planned for furthering tax reform including by introducing the latest international taxation rules and regulations. 

The Government of Mongolia (GOM) has approved "Vision-2050" Long-term Development Policy of Mongolia and New Recovery Policy to promote industry, electricity production, green development, urbanization, government productivity and expansion and renovation of ports. The Government is giving priority to increase the capacity of import substitute, export-oriented processing plants and domestic manufactuing in short and mid-term. In line with this priority, the GOM aims to increase the competitiveness of Mongolian exports and enhance the capacity of factories to produce high-quality goodsas well as to increase the export volume of value-added products by improving the productivity of factories that produce processed goods using local raw materials and adding value to traditional export products.To support this objective, GOM aims to identify key tax-related issues and challenges that processing plants and domestic manufacturing face in Mongolia.

In this context, the MOF is seeking to hire two national consultants who will work jointly to conduct an independent comprehensive study on the tax environment of industrial factories and domestic manufacturing in Mongolia and best practices of other countries that support manufacturing plants with tax policies. The study will focus on identifying the challenges and opportunities related to taxation that impact the productivity and competitiveness of processing plants and domestic manufacturing.

B. OBJECTIVE OF THE ASSIGNMENT

The objective of the assignment is to conduct a comprehensive study on the tax environment of industrial factories and domestic manufacturing in Mongolia.

C. SCOPE OF WORK

Key responsibilities under this assignment will include the following tasks at the minimum:

1. To provide an overview of the current tax system in Mongolia, including rates, exemptions, and incentives;
2. To analyze the impact of the tax system on businesses operating in Mongolia;
3. To examine the industrial policies and regulations in Mongolia and determine its impact on the tax environment;
4. To analyze the competitiveness of Mongolia’s tax and industrial environments in attracting and retaining businesses;
5. To identify challenges and opportunities in the Mongolian tax and industrial environments and provide recommendations for improvement;
6. To conduct an assessment of the tax compliance practices of industrial factories and domestic manufacturing entities in Mongolia, including an examination of their record-keeping, reporting procedures, and adherence to tax regulations;
7. To evaluate the effectiveness of tax incentives and exemptions specifically targeted at industrial factories and domestic manufacturing, and assess their alignment with national development goals and sector-specific needs;
8. To review the existing tax dispute resolution mechanisms and procedures for industrial factories and domestic manufacturing in Mongolia, analyzing their efficiency, fairness, and effectiveness in resolving tax-related conflicts and disputes;
9. To collect relevant data and information through surveys, interviews, and desk research to support the analysis and findings;
10. Based on the findings of Task 1 to 9 of this assignment and findings of the research on best practices of other countries conducted by Consultant #2, jointly with Consultant #2, to write a comparative analysis report detailing the findings and recommendations on which international practices should the GOM learn and on implementing new tax policy supporting industrial sector; and
11. To undertake other tasks related to activities mentioned above as reasonably requested by the Client.

D. DELIVERABLES:

The following deliverables shall be submitted to the Client:

1. A comprehensive report on the Mongolian tax and industrial environments, including an overview of the current tax system, an analysis of its impact on businesses, an overview of the current industrial environment, and recommendations for improvement.
2. A comparative analysis report detailing the findings and recommendations with the Consultant 2.
3. A presentation of the findings and recommendations to the client with the Consultant 2

E. REQUIREMENTS

The consultant must have proven experience in providing consulting services in similar projects related to tax research and must meet the following minimum qualification requirements:

Education: A suitable candidate should have a Bachelor's degree in accounting, finance, or a related field;

Experience: The incumbent should have at least five years of experience in tax consulting, with a focus on industrial settings. Strong understanding of tax laws and regulations related to industrial settings is required.

Language skills: Fluent written and spoken skills in Mongolian and English.

Other skills: 

• Excellent analytical and research skills; and
• Strong written and verbal communication skills

F. SUPERVISION AND REPORTING

The Consultant will report directly to the Director General of the Tax Policy Department (TPD), MOF and will work on a day-to-day basis with officers and the local consultants of the TPD on all matters related to the assignment. 

Director General of the TPD 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 the tasks in line with the approved Work Plan 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 shall not be shared with any outside individuals or organizations without the Client’s prior consent.

G. INSTITUTIONAL ARRANGEMENTS

The Ministry of Finance (TPD) will work with the Consultanting Firm 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.  

If you possess the above qualifications, please submit the following documents via email to procurement@sffs.mn:

1. Cover letter indicating why she/he considers her/himself suitable for the position.

2. Detailed CV highlighting relevant skills/experience.

3. Copy of diplomas or certificates; and,

4. Two (2) reference letters from previous last two employers no later than 15:00 PM, July 25, 2023.

The consultant will be selected in accordance with the World Bank’s Procurement Regulations for IPF Borrowers (July 2016).

The submitted documents will not be returned to the applicants. Please be noted that incomplete applications would not be considered for evaluation. Only selected candidate will be contacted. Address for submission of Expression of Interest: Ms.Zolzaya.B, Procurement Specialist, Strengthening Fiscal and Financial Stability Project, Room #205, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement@sffs.mn

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