Common use of Chapter Two Clause in Contracts

Chapter Two. Taxation Environment 2.1. Except as provided elsewhere in this Agreement, the Investor shall only be subject to the Taxes listed in Article 7 of the General Taxation Law as in force on the date of this Agreement. The Parties agree that, in accordance with Article 29.1.1 of the Minerals Law, the following Taxes are Stabilized (the "Stabilized Taxes"):‌ 2.1.1. Income tax of business entities (corporate income tax); 2.1.2. Customs duty; 2.1.3. Value-added tax; 2.1.4. Excise tax (except as provided for in Clause 2.23); 2.1.5. Payment for use of mineral resources (royalty) (as specified in Clause 3.13);‌‌‌‌ 2.1.6. Payment for mineral exploration and mining licenses; 2.1.7. Immovable property tax and/or Real Estate Tax; and 2.1.8. Tax on price increase of some products, which as from 1 January 2011 shall be invalidated by the WPT Invalidating Law.‌‌ Taxes listed in Article 7 of the General Taxation Law (as in force on the date of this Agreement) not listed above will be payable in accordance with the laws and regulations effective in that tax year of Mongolia (the "Non-Stabilized Taxes"). 2.2. Tax to be withheld as a result of the Corporate Income Tax Law shall be calculated at the rates specified in the respective clauses of the Corporate Income Tax Law (as in force on the date of this Agreement), which includes in accordance with any applicable double tax treaties as applied by Article 2.2 of the General Taxation Law, and which rates shall be Stabilized. 2.3. Non-Stabilized Taxes to which the Investor is subject shall apply to the Investor on a non-discriminatory basis. Taxes to which the Investor’s Affiliates, Contractors or Subcontractors, or their respective employees, are subject, shall apply to that taxpayer on a non-discriminatory basis. A Tax, or the levying of a particular Tax, will be considered as discriminatory if that taxpayer is subjected to taxation (including rate), or taxation requirement, that is more burdensome than the taxation and/or requirements to which other enterprises, companies, taxpayers or employees may be subjected to, or which differentiates that taxpayer's Tax burden from that of other taxpayers by reason of the unique size, or number, of such entity's operations.‌‌‌‌ 2.4. The Investor shall not be subject to or liable to pay the following Taxes after the date of this Agreement: 2.4.1. Taxes that are not listed in Article 7 of the General Taxation Law at the date of this Agreement; 2.4.2. Taxes arising from an amendment or addition to any law or regulation establishing a Non-Stabilized Tax to levy Taxes that are not listed in Article 7 of the General Taxation Law at the date of this Agreement; and 2.4.3. Taxes arising from an amendment or addition to any law or regulation establishing a Non-Stabilized Tax to levy a Tax of the nature of a Stabilized Tax. 2.5. The annual taxable income of 0-3.0 billion togrogs of the Investor taxable under Corporate Income Tax Law shall be taxed at the rate of 10% (ten percent). If annual taxable income exceeds 3.0 billion togrogs it shall be 300.0 million togrogs plus 25% (twenty five percent) of taxable income exceeding 3.0 billion togrogs. 2.6. The Tax specified in Clause 2.1.8 shall not be payable by the Investor from 1 January 2011. 2.7. Tax shall be imposed on the following income of the Investor at the following rates: 2.7.1. Dividends shall be taxed at the rate of 10% (ten percent); 2.7.2. Income from royalties shall be taxed at the rate of 10% (ten percent); 2.7.3. Income from disposal of an immovable property shall be taxed at the rate of 2% (two percent);‌ 2.7.4. Income from interest shall be taxed at the rate of 10% (ten percent); 2.7.5. Income from sale of rights shall be taxed at the rate of 30% (thirty percent). 2.8. Without affecting Clause 2.27 and the rights of the Investor to avail itself of applicable double tax treaties, the Parties agree that, for the purposes of tax required to be withheld by the Investor under Article 17.2.9 of the Corporate Income Tax Law, the following income of a non-resident taxpayer, but which are earned in Mongolia, shall be taxed when transferred to the non-resident taxpayer at the following rates: 2.8.1. Loan interest and payment for issuing a guarantee shall be taxed at the rate of 20% (twenty percent).‌ 2.8.2. Income from royalties, income from interest on financial leases, payments for administrative expenses, rent payments, lease payments and income from use of tangible and non-tangible assets shall be taxed at the rate of 20% (twenty percent). 2.8.3. Income from goods sold, work performed and services provided within the territory of Mongolia shall be taxed at the rate of 20% (twenty percent). 2.9. The Parties agree that, for the purposes of tax required to be withheld by the Investor under Article 17.2.9 of the Corporate Income Tax Law, income of a non-resident taxpayer from Management Services Payments, but which is earned in Mongolia, shall be taxed when transferred to the non-resident taxpayer at the rate of 20% (twenty percent). 2.10. Dividends, on common or preferred shares, paid by the Investor to its non-resident shareholder(s) who are non-resident taxpayer(s), shall be taxed in accordance with Mongolian laws and regulations, which includes in accordance with any applicable double tax treaties as applied by Article 2.2 of General Taxation Law, and which rates shall be Stabilized. 2.11. Tax paid by the Investor in a foreign country may be credited in accordance with Article