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 goods as 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 the 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 joinlty 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 related to industrial settings of the countries with similar economies as Mongolia.

C. SCOPE OF WORK

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

1. To carry out a research and analyze tax laws and regulations related to industrial settings of the countries that have similar economies and tax environment as Mongolia;
2. To conduct a comparative analysis of tax incentives provided by countries with similar economies and tax environment as Mongolia and identify the types of incentives, eligibility criteria, and their effectiveness in promoting industrial growth and attracting investment;
3. To select relevant case studies of countries that have successfully implemented tax policies supporting the manufacturing sector and analyze their policy frameworks, implementation strategies, and outcomes to extract valuable insights and lessons learned;
4. To explore examples of countries that have implemented industry-specific tax policies to support manufacturing sector and examine how these policies address the unique needs and challenges of specific industries and assess their effectiveness;
5. To evaluate the tax compliance mechanisms employed by countries with successful tax policies supporting manufacturing sector and analyze their approach to monitoring, reporting, and enforcement to identify effective practices that can enhance compliance in Mongolia;
6. To research international tax frameworks and agreements that have implications for the taxation of industrial settings and manufacturing sector and identify key principles and practices that can inform the development of tax policies in Mongolia;
7. Based on the findings of Task 1 to 6 of this assignment and findings of the research conducted by Consultant #1, jointly with Consultant #1, to produce a comparative analysis report detailing the findings and make recommendations regarding which international practices can inform the development of possible new tax policy supporting the industrial sector;
8. To provide professional assistance in developing and implementing new tax policies; and
9. 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 research report on the tax environment, industry-specific tax policies, and compliance mechanism of selected countries related to industrial settings;
2. A comparative analysis report detailing the findings and recommendations jointly with Consultant #1; and
3. A presentation of the research findings and recommendations to the client joitly with Consultant #1.

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 Consulting 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.  

H. CONTRACT DURATION AND PAYMENT CONDITION 

The assignment is expected to commence in July 2023. The total duration of the consultancy service is estimated to be three months. 

The Consultant will be required to carry out the above mentioned tasks in line with the approved Work Plan, which will serve as a basis for measuring progress on desired outcomes, goals and monthly payments for the entire consultancy service. 

The Client will review the performance of the consultant in delivering the work. 

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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