On June 5, 2024, the Parliament of Mongolia adopted the Law on Supporting Information Technology Production for the first time. The foundational infrastructure ensuring implementation of this law is the “Virtual Zone for Supporting Information Technology Production.”
At the Government meeting held on September 17, 2025, a decision was made to establish the virtual zone, and the following regulations were approved: “Regulation on the operation of the virtual zone for supporting information technology production” and “Regulation on providing tax and non-tax incentives to legal entities registered in the virtual zone”.
As a result, the virtual zone regulations have officially come into force, and requests from domestic enterprises engaged in information technology production are now being accepted through the E-Business system.
Benefits of registering in the virtual zone include:
- Enterprises operating in the zone may receive corporate income tax reductions in accordance with the Corporate Income Tax Law.
- Enterprises providing financial support and assistance under corporate social responsibility initiatives may receive tax incentives.
In addition, technology companies may receive the following nine types of support specified in the Law on Supporting Information Technology Production:
- Grants for patenting expenses;
- Grants to finance international quality and standards certification expenses;
- Compensation for social insurance contributions;
- Grants covering up to 40% of the total cost of artificial intelligence projects;
- Rewards and incentives for patent holders;
- Support covering up to 70% of research and development expenses for startups;
- Loan guarantees;
- Financing of a certain percentage of loan interest;
- Accelerated depreciation of assets.
The establishment of the virtual zone will help localize international best practices, accelerate the development of the technology sector, and contribute significantly to creating export-oriented products and services based on intellectual creation rather than dependence on mining.
Organizations interested in registering in https://e-business.mn/home the virtual zone are encouraged to submit their requests through the DAN system at https://e-business.mn/home.
