Law 10/2003, of 27 June, communal finances since the General Council in its session of 27 June 2003 has approved the following: law 10/2003, of 27 June, communal finances preamble the law of communal finances is the culmination of the development of communal self-government in matters concerning tax and financial management laid down in the Constitution and in the law of delimitation of competences of common.

The basis for the drafting of the text have been the need to establish a common framework that allows enough to develop tax and financial competence, taking into account the law on bases of tax law and the general law on public finance. For this reason, it was necessary to analyse the global model of financing of the Commons, in order to guarantee them a financial sufficiency by the various planned revenue figures.

Consequently, the principles and objectives in general, together with the principles of equality, of territoriality, of coordination, of legality and of Government set out in particular in the Constitution, are as follows: to establish a sufficient legal coverage for the taxes that currently apply all common. This authority regulations is necessary to obtain the maximum legal security in communal activities in tax matters, and this security is achieved by setting a standard of the rank of law that regulates the essential elements of communal taxes, and which guarantees at all times the competition that the attribute in this matter the qualified law of delimitation of competences of the common and the law of transfer in the Commons.

Achieve a minimum of communal tax homogenization regarding the essential elements of the taxation and limit the possible discrimination arising from the current disparity of fiscal figures applicable to each parish.

Regulate the modalities of indebtedness of Commons and set some limits and control mechanisms that contribute to a more balanced and financially solid Andorran public sector.

Establish guidelines to manage the rights and the duties attributed to common and determine the mechanisms of control. In this sense, the law fits the scheme of public finance in the operation of the common.

The tax rate established in connection with the communal taxes have been calculated under the premise of maintaining the collection capacity of the moment of Commons. At the same time, leave a margin of manoeuvre in the Commons which allows to increase its tax revenue in the coming years, according to the fiscal effort they deem appropriate within the limits of their self-government.

This law also wants to establish a more rational communal funding model and adjusted to the needs of the country, both in terms of the whole of the communal income as related expenses and the subsequent control.

The law is made up of a title, and composed of eleven articles, where they establish the General rules; a title II, consisting of twenty-five articles, where you determine the resources of public law of nature as tax rates, special contributions, communal taxes, shared taxes, State surcharges and late payment penalty and tax penalties; a title III, with thirteen articles, where you gather the resources of public law tax nature such as transfers, the public prices, debt, tax returns and not sanctions arising from the compulsory transfer of land; a title IV, where they establish the resources of private law, with two articles, and a title V relating to the regime of communal finances, mainly with regard to budgets, public spending and accounting, composed of fifty-three articles. Two additional provisions also form part of the law, three transitional provisions, a repeal and final provision.

Title i. General rules Article 1 Purpose the purpose of this law is to determine the tax and financial skills of Commons and to establish the modalities of exercise.

Article 2 scope of application this law is applicable to common, as organs of representation and administration of the parishes.

Article 3 financial resources of communal finances communal finances will constitute with the financial resources the following: A public Resource tax in nature): a) Special Tax Rates b) c) communal Tax Contributions of shared state) e) surcharges and delay f) tax Sanctions B) public Resources tax not in nature: a) Transfers b) public prices c) Debt of) Sanctions do not e) Tax Revenue derived from the compulsory cession of lands C) resources private law: a) income and monetary products from their own heritage.

b) other income from private law, which includes the incorporation of the assets or rights acquired by inheritance, bequest, donation or any other title juridicoprivat.

Article 4 Jurisdiction The powers in the Commons are defined in article 4 of the law of delimitation of competences of the common.

Article 5 Powers 1. The powers attributed to common in the framework of this law, can be shared or exclusive, and are the following: a) tax authority financial authority sanctioning Powers: materials b) formal Powers: regulatory administrative authority: management and comprovadora 2. The exercise of the powers corresponding to the common.

Article 6 Tax Authority The Commons establish, regulate and apply taxes according to the Constitution, the law of delimitation of competences of the common, the law on the bases of tax law and this law.

Article 7 financial Authority 1. The common produce and approve the budgets.

2. The budget is annual and governed from 1 January until 31 December of each year, inclusive.

3. The budgets you are subject to the provisions set out in the Constitution, this law and, moreover, in the general law on public finance.

4. The common sort expenses in accordance with the principle of self-government.

5. The budgets must be approved by regulations.

6. The regulations of the budget can not establish taxes.

7. the regulations of the budget is made up of rules of application and the United States of expenses and income.

Article 8 The sanctioning powers apply corresponding sanctions violations and regulate common to


to comply with the Ordinances, regulations and decrees, in accordance with the powers that are attributed to it. The amount resulting from these sanctions have tax and regulates nature according to the terms and limits laid down by the law on the bases of tax legislation and tax regulations in public.

Article 9 regulatory 1. The common regulations for the authority is exercised by means of Ordinances, regulations and decrees, in accordance with the Constitution, which regulates the law of delimitation of competences of the common, the law on the bases of tax law and the present law.

2. The regulations contain general rules aimed to establish at least the essential features of the raw material that regulate.

3. The regulations contain rules of a general nature intended to deploy, if the Commons they see necessary or advisable, the Ordinances.

4. The decrees formalize agreements or acts of singular character intended to implement the Ordinances and regulations to individual cases.

5. The ordinances, regulations and decrees of Commons apply and have strength of force within the territory of the respective parish, although the recipients of the rules, agreements or acts have habitual residence in other parishes or abroad.

6. The ordinances and regulations must be published in the official bulletin of the Principality of Andorra to come into force in accordance with the General rules.

Article 10 Administrative Authority: management and comprovadora Are common to manage, and manage their own resources and apply their Ordinances, its regulations and its decrees under the principle of self-government.

The management and verification of national tax corresponding to the shared Government, without prejudice to the rule or regulation of each tribute.

Article 11 the regulatory Principles of communal finances communal finances must comply with the following principles: a) Self-government, in order that, within the regulatory framework referred to in article 3 of the law of delimitation of competences of the Commons, the Commons may exercise their powers.

b) Sufficiency, in order that the flow from the bastin resources to meet the needs required for the provision of public services and the other in charge of Commons.

c) equality, in such a way that the citizens must have the possibility of access to a similar level of services tending to take a fiscal effort equivalent.

d) Territoriality, so that the powers attributed to it in the Commons are exercised within the territory of the parish in question.

e) coordination, with the aim that the actions and relations between the common and the directors general meet the criteria of efficacy, of economy and efficiency, in order to avoid the production of unnecessary costs in the perception of the income.

Title II. Public law tax nature resources Chapter i. exercise of the powers in respect of the authority to Exercise Article 12 tax regulations 1. The common display and regulate the essential elements of the taxes that are in accordance with the provisions of this law, by means of the communal tax regulations.

2. For shared national tax set out in chapter V of this title, the common fix the corresponding additional tax rate by the communal tax regulations.

3. The implementation and regulation of taxation and the tax regulations consequent must be approved by the Common before the regulations of the budget.

4. The common update rate of taxes by the regulations of the budget within the limits established by law.

Article 13 definition and contents of the communal tax regulations 1. The communal tax regulations is unique, so that regulates all of communal taxes.

2. communal taxes are classified as special contributions, fees and taxes.

3. The communal tax regulations must be regular, at least, are elements that point out below, in respect of all the taxes that apply: to) the fact generator, the compulsory tax base tax, the tax rate, the incurrence and the rest of elements determinants of tax debt.

b) infringements and sanctions applicable.

c) the system of management, and settlement statement.

4. With respect to the shared national tax, the communal tax regulations regulates only the additional tax rate applicable, and if this is the case, the management, the check, infringements and sanctions.

Article 14 the exercise of administrative authority: management and comprovadora 1. The Commons have, with regard to the collection of communal taxes, the same prerogatives legally established in favour of the general administration.

2. The prerogatives of management and check in relation to shared national taxes on the part of the tax debt that is, are the common, while the may delegate, by agreement, in the Government, without prejudice to the established norm of each tribute.

3. In the event of collection enforcement period, and in application of article 60 of the law on the bases of the Tax Ordinance, the collection authority is the common in the context of self-government.

4. in case of concurrence of credits of different age, the amounts charged on these loans are applied to the oldest debt.

5. the common are competent to check the compliance with the communal taxes according to the law on bases of tax law.

Article 15 Exercise of sanctioning The common are competent to define infringements and apply sanctions for breach of communal regulations in relation to communal taxes, in the terms established in the law on the bases of the Tax Ordinance, and the regulations of each tribute.

Chapter II. Taxes Article 16 definition and fact generator 1. The taxes are taxes the fact generator of which is the provision of a public service or the completion of an administrative role of request or compulsory reception that refers to the tax obligation, or affect or benefit in particular.

2. The communes can establish specific figures of taxes for all the services and activities provided for in paragraphs 2 and 3 of article 9 of the law of delimitation of competences of the common.

Article 17 taxable 1. Are taxable rates, as tax payers, the natural or legal persons who apply for the provision of the public service or the execution of the administrative role, or that are affected or benefited.


They also have the same consideration, civil societies, inheritance jacents, communities of goods and all entities or assets freelancers who despite not having legal status constitute a separate economic unit capable of imposition.

2. tax rates are forced, as a responsible: a) On the rates established by reason of services or activities that benefit or affect the occupants of dwellings or business premises, the owners of these properties, which, if necessary, can do affect the quotas in the respective beneficiaries.

b) at the rates established by the grant of the licences in urban planning, the builders and contractors of works, which, if necessary, can do affect the fees on the owners of the works.

Article 18 Quantification of tax debt the amount of the levy may not exceed the actual cost of the provision of services or carrying out of the activity in question. To this end, the common approved a financial report justify the parameters and the variables that determine the cost of the service and the setting of the corresponding rate, as well as its update.

Article 19 Incurrence tax debts derived from the fees accrued to the date of issue of the authorisation or to the date of commencement of the provision of services or carrying out of the activity that requested.

Chapter III. Article 20 special contributions definition and fact generator 1. The special contributions are taxes the fact generator which is the Common agreement of carrying out certain works or the establishment or extension of public services to be subject to the requirement of effectiveness of their effective implementation, and to produce an increase in value of the property of the tax obligation or that somehow the benefit especially.

2. The works that allow the application of special contributions to part of the Commons are the following: a) first establishment of voravies and its renewal, if this improves considerably the conditions.

b) first establishment, replacement, or repair of public roads, pavement and equipment extraordinary maintenance which is communal competition.

c) first establishment of public lighting and its renewal if this improves considerably the conditions.

d) opening, enlargement, alignment and extension of urban secondary roads and the construction of which is municipal competition, as well as communal and mountain paths.

e) creation of public squares.

f) Construction of facilities to understand the supply of services of communal sphere.

g) first establishment, replacement, repair or extraordinary separation of rainwater pipes and purification of communal sphere.

3. The special contributions are applied while the land, buildings or premises have in any of its parts or facades of similar works in the improvements that it's funded by special contributions and that corresponding to other ways that limit with the said land, buildings or premises with façade to the street.

4. special contributions cannot be applied by reason of: a) works of mere conservation, ordinary or current maintenance repair.

b) work that benefit alleged taxable when these are charged entirely to the works.

Article 21 taxable 1. Are taxable the owners of real property located in the area of linear profit.

2. linear benefit area is understood to be the metre-long façade of the property of the tax required to experience an increase in value as a result of the completion of the works or of the establishment or extension of communal public services.

3. Subsidiary, are taxable are possessors of real estate located in the area of linear profit, if these properties do not have the owner, if the owner is unknown or if there are judicial contest on Sunday title.

4. Are taxable for singular benefit companies supplying services that use the facilities corresponding to the letter f of article 20.2.

5. It is understood as a singular profit the increase in value that experience the real estate as a result of the works to which it gives rise the special contribution applied, no matter if you are the property of the companies supplying services such as if you have the right to use.

Article 22 Exemptions 1. Enjoy exemption of this tribute the co-princes acting heads of State, the General Council, the Government and the communes.

2. The existence of cases of exemption may not aggravate the tax burden of those who do not enjoy this benefit, so that the amounts corresponding to the exemption are assumed solely by the corresponding Common.

Article 23 tax Base 1. The basis of taxation of special contributions may not exceed 90% of the cash cost of the work that the local Council intends to carry out.

2. The cost of the work includes: a) the actual cost of the works.

b) the price of the acquisition or expropriation, in fact, necessary for the execution of the works, fixed in accordance with the expropriation Act.

3. In any case, the amount of the expenditure mentioned is reduced accordingly in the amount representing the grants or contributions that the get to work on what it is. If the subsidies or contributions are awarded to a tax obligation, the amount obtained is intended primarily to compensate for its own membership fee and the excess, if any, reduced to a pro-the quotas of the other taxable.

Article 24 Determination of contributions 1. The payments of taxable are determined to divide the cost of the works or of the service among all owners of real estate, according to the linear meters of façade that make up the area of linear profit.

2. The fees of the taxable benefit for singular are determined in accordance with the distribution of the costs of the works or services that give rise to the special contribution, between the owners or entities users of the facilities included in the letter f of paragraph 2 of article 20.

Article 25 Incurrence special contributions accrued to the date of the award of the works, or for directly made by the communal technical services, to the date of commencement of the works.

Article 26 application and effectiveness 1. The special contributions will have to apply through a Common specific regulations that establish the essential elements of the special contribution of this trademark and the area of application.


2. The regulations for the creation of a special contribution are published in the official bulletin of the Principality of Andorra for the purposes of claims and appeals.

Article 27 management and liquidation 1. The settlements of special contributions made based on the projected cost of the works are provisional and will be notified to taxable in accordance with the administrative procedure of the common law.

2. Once approved the liquidation budget of the expenditure corresponding to the work performed will practice the final payments. If the actual amount of the expenditure is different from the originally calculated, the settlements are ex-officio ground for common to adjust them to the reality of the cost. If due to rectification, the final fees are higher than the provisional excess required by additional payment. If the provisional payments are greater than the ultimate, the Administration returns the difference in taxable within a period of three months from the date of the agreement of rectification.

3. The fees can be divided, for annual periods and for a maximum period of five years from the date of incurrence, upon request of the tax obligation.

In the case of an instalment payment, the tax benefits will be forced to pay the interest to the legal achievements by deferred payment amounts.

Chapter IV. Communal taxes Article 28 definition and communal taxes types are the ones who have legal authority to regulate in accordance with the law of delimitation of competence, and are as follows: a) the traditional tax and site.

b) estate tax.

c) the tax on income from tenants.

d) the photon tax of commercial activities, business and professional.

Article 29 traditional tax and place 1. Definition: the traditional tax and site is a tax of direct nature recorded fact reside in the territory of a parish.

2. Fact: the fact generator generator of the tax from the heat and place is the primary residence of the individual, of age between 18 and 65 years old, in the territory of the corresponding parish.

For the purposes of this tax is understood as a primary residence is the place where the person is the first day of the calendar year, or the day of the first communal census registration for people who come from other countries.

3. Tax Liable: has the condition of forced physical person tax census in the territory of a parish, of age between 18 and 65 years.

4. tax Fee: Each Common fixed, by means of the corresponding regulations, the tax share of tax from the heat and place, between 5 and 50 euros for individual census in the territory of the parish, of age between 18 and 65 years.

5. the tax Period and the incurrence of tax and annual site and paid on the first day of the calendar year, or the day of the first communal census registration for taxable that come from other countries.

6. Management and liquidation: the management and the settlement of the tax from the heat and place corresponding to each common, that determined by regulations, in accordance with the provisions of the present law.

The taxable who live in the same housing unit can enter the tax debt together, on the site, in the form, within the deadlines and according to the models that each Common set by means of the corresponding regulations. In this case, is the owner of the registered office of the real estate unit who has to pay the tax debt.

Is meant by real estate unit, the place of residence of one or more taxable living in an apartment, townhouse, and also in the rooms and apartments that make up the residence of one or more taxable.

Article 30 estate tax 1. Definition: the estate tax is a tax of direct nature that burn the property of an estate located in the territory of a parish or the right of use over the real estate.

2. Fact: the fact generator generator of the tax on real estate property is the property of an estate or the ownership of a real right of use on a property.

In the event of a real right of use, is the owner of this right who rest subject to the tax for the whole of the estate.

3. Exemptions: enjoy exemption from this tax the co-princes as heads of State, the General Council, the Government and the communes.

The common, by regulations, be exempt from the payment of the tax on real estate property built by the owners with regard to the real estate unit in which these reside effectively and permanently as long as the surface of the unit is less than 100 m2.

4. Tax Liable: it is required the owner of the property tax or the holder of the right of use on the same property.

5. Tax Basis: the basis of taxation is determined in function of the square meters of real estate.

When the real estate is built, the estate's surface corresponds to the total area built and weighs to a location index.

When the real estate is not built on the surface of the well rating coefficient is an urban property weights.

The communes established a scale of levels of location in order to consider the category of the site or the street where is located the estate.

The value of indexes of location is between 0.5 and 2.

The classification of sites or the streets of every parish in the communal tax regulations, in which there are a maximum number of five categories.

Likewise, the common establish some order coefficients consider the classification of the urban area in which is based the estate not built.

The value of urban qualification coefficients is between 0.5 and 2.

The urban rating of real estate is not constructed in the communal tax regulations, according to the following categories: a) urban land b) developable c) undevelopable 6. Tax rate: The tax rate applicable to the property built is between 0.3 and 3 euros per square metre of built area of real estate.

The tax rate applicable to the property not built is between 0 and 0.75 euros per square meter of the surface of the real estate.

7. tax Fee: the fee revenue of the tax on real estate property


It is to apply to the tax base, the tax rate.

8. the tax Period and incurrence of the tax period: the estate tax is the calendar year. The tax is payable on 1 January of each year.

9. Management and liquidation: the management and the settlement of the tax on real estate property correspond to the common, that determined by regulations, in accordance with the provisions of this law.

Are taxable must determine and pay the tax debt on the site, the shape, the deadlines and according to the models established in each common.

Article 31 the tenants income tax 1. Definition: the tenants income tax is a tax of direct nature videos the obtaining of income derived from the rental of real estate located in the territory of a parish.

2. Fact: the fact generator generator of the tax on the income tenants is the obtaining of income, on the part of the lessor, from the rental of real estate.

3. Exemptions: enjoy exemption from this tax the co-princes as heads of State, the General Council, the Government and the communes.

4. Tax Liable: for the purposes of the tax on income from tenants, it is required the owner of the property tax the property or the right of use on the same property.

5. Tax Basis: the basis of taxation of the tenants income tax is made up of the sum of the income actually accredited by the tax obligation, during the tax period.

6. Tax rate: The rate of the tax on income from tenants is a percentage of the total value of the accredited income during the year, which may vary between a minimum of 0.4% and a maximum of 4%.

7. tax Fee: the fee revenue of the tax on income from tenants is to apply to the tax base, the tax rate.

8. the tax Period and incurrence of the tax period: the tax on income from tenants is the calendar year.

The tax is payable on the last day of the tax period. In the event of death of the tax, the tax period must end on the day of the death.

9. Management and liquidation: the management and the settlement of the tax on the returns that correspond to Common tenants, determined by regulations, in accordance with the provisions of this law.

Are taxable must determine and pay the tax debt on the site, the shape, the deadlines and according to the models established by every common.

Article 32 photon tax of commercial activities, business and professional 1. Definition: the photon tax of commercial activities, business and professional direct in nature is a tax that is levied the exercise of a commercial, business or professional activity carried out in the territory of a parish.

2. Fact: the fact generator generator of the tax is the exercise of a commercial, business or professional activity in the territory of a parish.

Are professional, business or commercial activities, which involve the Organization for its own account of human and material factors of production or any of them, in order to intervene in the production, development or marketing of goods and services.

3. Exemptions: enjoy exemption from this tax the agricultural activities carried out by individuals.

4. Forced compulsory tax tax is tax on the moment the person, or company, the owner of the economic activity.

In addition, they have the status of taxable entities, such as civil societies, community of goods, and other entities that, without having legal personality, constitute an economic unit or a separate heritage, when carried out activities subject to the tax.

5. Tax Basis: the basis of taxation is determined in function of the square meters of the surface of weighted operation to a location index.

The operating surface is the total area of the premises for carrying out the activity, expressed in square meters and, if applicable, by the sum of all your plants. However, you can only take into account as a working surface the 40% of the surface in the following cases: Area not built or discovered the deposit of raw materials or products of any kind, and, in general, to any aspect of the activity in question, including the aspects of complementary accessories and this activity, such as the surface occupied by roads , gardens, security zones, etc.

Surface or cover of the warehouses and deposits of all types.

Surface of the car parks covered or uncovered, as long as the activity in the main title is not a parking space.

The common need to establish a scale of levels of location in order to consider the category of the site or the street where get each economic activity.

The value of indexes of location is between 0.5 and 2.

The classification of sites or the streets of every parish in the communal tax regulations, in which there are a maximum number of five categories.

6. Tax rate: The tax rate applicable to each activity defined by common agreement with the classification made in the classification of economic activities in Andorra, it should be between 0.1 and 100 euros per square metre of the area of operation.

7. tax Fee: the fee revenue of the tax of radiation of commercial activities, business and professional is to apply to the tax base, the tax rate.

8. the tax Period and the period of incurrence of tax: tax on business and professional activities, radiation is the calendar year. The tax is payable on 1 January of each year.

In the event that the activity is initiated after 1 January, the tax is payable on the date of commencement of the activity. In this case the tax share is calculated proportionately to the number of terms that remain to the end of the year, including the start of the activity.

In the event that the activity is finished before December 31, the tax share is calculated proportionately to the number of calendar quarters in which it has carried out the activity, including the completion of the activity.

9. Management and liquidation: the management and settlement of the photon tax of commercial activities, business and professional are common, that determined by regulations, in accordance with the provisions of this law.

Are taxable must determine and pay the tax debt on the site,


the shape, the deadlines and according to the models established by every common.

In the case of an activity, the communes can establish a liquidation quota bonus up to a maximum amount of 50% of the amount resulting from the settlement fee.

Chapter v. State Tax shared Article 33 Definition 1. The fiscal responsibility applicable to taxes shared between the general administration and the communal Administration, is exercised through the regulation of the tax rate and tax fees on the terms stipulated by the law.

2. For the purpose of determining the financial ability of the common, this additional burden has been included as a tax revenue of Commons.

Article 34 additional Burden of the tax on real estate transfers 1. The real estate transfer tax is a tax of indirect nature that record real estate property transfer and is established in fiscal co-responsibility between the Government and the communes.

2. The exercise of the right of common tax in relation to this tax is done through the tax on real estate transfers.

3. The tax rate is established by the communal regulations, and may not be lower than the 0.50% or higher than the 1.25%.

Chapter VI. Surcharges and delay Article 35 The common collection procedure apply surcharges and delay with respect to communal taxes, following the rules of the law of the Tax Ordinance.

The amount resulting from the relevant surcharge is a tax income of the ordinary.

Chapter VII. Tax penalties Article 36 competent body for the imposition of sanctions Are imposed sanctions of common taxation nature in accordance with the terms stipulated in the law on the bases of tax law.

The amount resulting from the relevant tax revenue is a sanction of the ordinary.

Title III. Public law of nature resources tax not chapter i. Article 37 Transfer Definition 1. The common, in accordance with the law of transfer in the Commons, they receive a share of the income of the general administration.

2. However, the common part of the proceeds of the fee for the possession of vehicles, Government collection, under the terms provided in the law of delimitation of competences of the common and the law on the tax on vehicle ownership.

Chapter II. Public prices Article 38 Definition Are public prices required by the common provisions for the carrying out of the services or activities in which there is any of the following circumstances: a) is the use of a well in the public domain.

b) the interested party requests the service or the provision of voluntarily.

c) that the service can be provided by the private sector with free competition.

Article 39 Made The public prices can establish common generator at least by reason of the facts the following generators: A) private Use or special use duly authorized of the subsoil, soil or you want a good communal public domain: a) occupation of the public domain referred to by means of signs and/or display cases.

b) occupation of the public domain referred through the installation of containers and fencing works.

c) parking lot or parking reservations on public roads and driveways.

d) occupation of the public domain referred through the installation of terraces and use of the space of the voravies and other parts of the municipal public domain.

e) any other type of occupation of the public thoroughfare or voravies with elements that protrude from the front of the property.

f) sale of wood.

g) extraction of stone.

h) Supply of water or mineral water.

I) landfills.

j) oral or written public advertising, public voice.

Parking on the public highway k) for the loading, unloading and/or delivery of goods.

the) any kind of occupation of the ground or flight of the municipal public domain.

m) rent or sale of niche or columbarium.

B) For the provision of the following services: a) nurseries.

b) activities for children and adults.

c) rent or sale of mailboxes and containers for trash or for selective collection of garbage.

d) Services of funeral home, mortuary incineration and other communal funeral services.

e) Eixivern.

C) for the provision of administrative services: a) Sale of publications.

b) Sale of documentation in general.

c) Other voluntary reception services.

Article 40 payment to The forced payment of communal public prices are the people who benefit from.

Article 41 Amount 1. The amount of the public prices are determined in such a way that cover, at a minimum, the cost of the service that is provided and taking into account the market price which corresponds to the use of this service on the part of the applicant.

2. However, when social policy reasons circumstance and can justify, they can set prices below the cost of the services provided.

3. Proposals for the establishment or modification of the amounts of public prices that are required must be accompanied by a report that motivates them and justify the amount.

Article 42 Implementation and management 1. The common set and modified by regulations the public prices of the services they offer.

2. the public can manage common price directly or delegate it to other entities via the authorization.

3. The debts arising from public prices can be required by the administrative and, consequently, by way of enforcement.

4. The public prices are payable from the start of the service.

However, it may require advance payments or deposits prior to the completion of the services. In this case, if the service does not get to pay for reasons not attributable to the applicant, the common has to repay the amount along with the corresponding interests.

Chapter III. Article 43 debt definition and methods 1. For the purposes of this law, the municipal debt to compute is constituted by: a) the indebtedness of the communal Administration.

b) the indebtedness of the public companies participated by the communal Administration set forth in the article 53.1.

c) the indebtedness of the other subsidiary companies by the communal Administration, provided that the percentage of participation is higher than 5% or that the communal Administration has at least one member in the Board of Directors of the company owned.

2. The indebtedness of the public companies, referred to in paragraph 1 b) above,


participated by the communal Administration will be counted in their entirety, proportionately to the percentage of participation in its share capital.

3. For other subsidiary companies by the communal Administration referred to in paragraph 1 c) above, will be counted debt that exceeds the amount of the own funds of the institution which, proportionately to the percentage of participation in its share capital.

They are considered as equity share capital paid up, the reserves, the result of the exercise and the results pending application in accordance with the latest balance sheet approved.

4. In the cases provided for in paragraphs 2 and 3 above, does not compute the debt that has been the subject of a guarantee by the communal administration.

5. The communal debt includes: a) contracting of loans and lines of credit and financial operations with banks and savings banks based in the Principality of Andorra or abroad.

b) Treasury Operations.

c) delivery of bills of Exchange, promissory notes or similar documents.

d) granting sureties and guarantees.

e) Conversion or replacement, total or partial, of existing operations.

6. under no circumstances the communal debt can be deferred through negotiable.

Article 44 Standings 1. The municipal debt is classified in the short and long term.

2. Represent borrowing transactions in the short term the hiring of Treasury operations as well as the Bills of Exchange, the promissory notes and similar documents, in which the period of time elapsed between the available funds and your cancellation does not exceed a year.

3. long-term borrowing operations Constitute the procurement of loans, credit lines and financial operations, in which the period of time elapsed between the available funds and their cancellation is greater than one year.

These operations must be authorised by the plenary of the common in the annual budgets of the regulations or the regulations of extraordinary credit or credit charge.

Article 45 Guarantees 1. They are considered to guarantee the warranties that involve liability of Commons.

2. the common, in the exercise of their functions, they can pay their guarantee or personal guarantee to the individual operations of credit of any nature that they agree people, natural or legal, to a maximum amount equal to the debt that the common should be contracted in the case of directly financing the operation.

3. the amount of the guaranteed counted as an indebtedness for the purposes of the limit laid down in article 47.

Article 46 1 Destination. In general, the common need to allocate the income arising from the operations of indebtedness to the financing of investments or the total or partial cancellation of debts.

2. However, the Commons can be used the income arising from the operations of short-term borrowing to finance current expenditure in order to cover temporary needs of the Treasury.

Article 47 the maximum Amount of debt 1. The total amount of borrowing operations referred to in article 43 does not exceed 200% of building total revenue in the budget of the communal Administration of the calendar year immediately before the completion of the transaction, excluding the same debt and the income from the disposal of assets.

2. The annual financial burden may not exceed 20% of the total income of the communal Administration building on the budget for the calendar year immediately before the completion of the transaction, excluding the same debt and the income from the disposal of assets.

The financial burden is the sum of the amounts applied, in each financial year, the payment of the installments, the interests and financial committees corresponding to credit operations, including amounts related to the possible effectiveness of the guarantees.

The financial burden includes the corresponding public societies participated by the communal Administration according to the audited accounts of the immediately preceding calendar year, proportionately to the percentage of participation. The calculation of this financial burden is determined in accordance with the previous paragraph.

For the other subsidiary companies by the communal Administration referred to in paragraph 1 c) in article 43, the financial burden is calculated proportionately to the percentage of participation in its share capital, having considered it with the part of the indebtedness of the society said that counted for the purposes of calculation of the debt to its total indebtedness, communal respect. The calculation of this financial burden is determined in accordance with the second paragraph of this section.

3. The total amount of borrowing operations in the short term may not exceed 40% of the total income of the communal Administration building on the budget for the calendar year immediately before the completion of the transaction, excluding the same debt and the income from the disposal of assets.

4. The common that exceeds any of the limits set out in sections 1 and 2 above, get the participation of State revenue in the budget for the next year that will see the deflection, reduced in an amount equal to the excess of indebtedness over the established limit. This amount is deposited to the INAF so far in which the common complies with the limits established.

5. The Court of Auditors informs the General Council of the amount of debt and the situation of each common.

Chapter IV. Article 48 penalties, tax not competent for the imposition of penalties, the amount of tax not sanctions received in virtue of the powers attributed to the common are agreed and imposed by the plenary Assembly of the ordinary or to the organ in which the task is delegated.

V. Yield derived from the squeeze of land Article 49 Definition Are public resources of Commons yields derived from the compulsory transfer of lands referred to in article 8 of the regulation town planning, of 5 September 2002, which develops the general law of spatial planning and urban development, of 24 January 2001.

Title IV. The resources of private law Article 50 Definitions 1. Are the resources of private law of Commons: a) The income and monetary products arising from the use of the property and rights of the common heritage, provided that these assets and rights are not affected in the use or public service.

b) other acquisitions money from inheritance, bequest, donation or any other title juridicoprivat.


2. Under no circumstances shall have the consideration of resources of private law the income that any concept, come from the assets of the municipal public domain.

Article 51 Destination the income arising from the alienation or encumbrance of assets or rights are qualified as equity cannot be used to finance current expenditure.

Title V budgets, public spending and accounting chapter i. General provisions Article 52 regulations applicable to the system of communal finances 1. The budget and the public accounting of Commons are regulated by: a) this law.

b) the budgetary and financial regulations of the common.

c) the general law of public finance, in everything that has not been adapted in the budgetary and financial regulations of each common.

d) the regulations and decrees of Commons that display their respective budgetary and financial regulations.

2. The rules of the text articulated from the regulations of the annual budgets and specified for each budget exercise run the applicable precepts.

Article 53 communal public Societies 1. Communal commercial companies are public companies, the participation in the capital stock of which on the part of Commons majority is enough to have control.

2. The performance of the communal public develops in accordance with the rules of private law, without prejudice to remain subject to financial control in the terms established in article 87 and matching of the present law.

Chapter II. Economic rights and duties of the communal finances Section 1a. Economic rights of communal finances Article 54 economic rights Are economic rights of communal finances the credits arising from the application of the resources defined in article 3, as well as other resources that belong legally to the communal Administration.

Article 55 The economic rights management Management of the communal Administration corresponds to the Minister in charge of finance, to the consuls by reason of the services that depend on it directly and can result in income, and the rest of the directors in the same event.

Article 56 Prescription 1. Saved that other laws establish, prescribe in three years: a) the Faculty of the communal Administration of tax debts and liquidate other income of public law. The period of limitation starts from the fact generator or of the birth of the correlative obligation.

b) the right to demand the payment of debts cleared. The period of limitation starts with the notification of the settlement.

c) the authority to impose pecuniary sanctions. The period of limitation is calculated from the day on which the infringement committed.

2. The prescription is interrupted if the debtor recognizes the debt of reliable way in front of the communal Administration or this will requires the payment, also of reliable form. In the event of interruption of the prescription the debtor does not lose the time elapsed before the interruption.

3. The prescription of the economic rights applies ex officio by decision of the competent body.

Section 2a. Financial obligations of communal finances Article 57 of the obligations 1. Expenditure obligations born of the laws, legal business and communal standards of all kinds, and of the acts or facts which, according to the legal system, generate also the obligations mentioned above.

2. The obligations of payment are born of the implementation of the budgets, in accordance with the payment of the corresponding fee, and of judicial or administrative resolutions statements fermes.

Article 58 1 Management. The management of expenditure obligations corresponds to Full of the ordinary, to the consuls and Directors according to the respective budget section, with regard to the budget of the communal Administration, without prejudice to the possibility of total or partial delegation, in senior positions.

2. Correlatively, the payment obligations of the sort the Department in charge of finance, regarding the budget of the communal Administration.

Article 59 if the communal Administration Compliance does not pay the creditor community finance within a period of three months from the date of the acknowledgement of the obligation or of the notification to the person concerned of the Court ruling or administrative resolution firm, paid him the legal interest on the amount due, from the day on which it should have made payment with the prior written claim of the creditor.

Article 60 a prescription 1. Saved that other laws establish, prescribe within three years: a) in general, the obligations of expenditure and payment. The prescription periods begin, in the first case, the date of presentation of the documents attesting to the effectiveness of the expenditure, and, in the second case, the date of notification of the payment of the cost or the order of payment.

b) in particular, the right to repayment of undue. The prescription period starts on the day of the payment.

2. The right to claim rights and damages prescribed within three years from the date on which occurs the fact, action or omission that motivates.

3. The prescription is interrupted if the communal Administration acknowledges the debt of reliable way to the creditor, or if it requires the payment, also of reliable form. In the event of interruption of the prescription the communal Administration does not lose the time elapsed before the interruption.

4. Prescribing economic obligations apply ex officio by decision of the competent body.

Chapter III. Communal budget Section 1a. Budgetary principles Article 61 the principle of unit 1. The municipal budget is the expression code, jointly and systematically the obligations that, at most, can recognize the communal Administration, and the rights that they expect to settle during the financial year in question.

2. The budgets consists of the budget of the Municipal Administration and the forecasts of the action programmes of the participating public companies by the communal Administration.

3. The full of the ordinary should prepare a consolidated budget with informative purposes.

Article 62 the principle of universality 1. The budgets include all income and expenses must be referred to agencies that contains: a) the United States, which comprise income estimates of the various economic rights to liquidate during the year.

b) the States of expenses that relate the credits required for the fulfillment of the obligations.

c) the States of resources and allocations, with the corresponding estimates and


assessment of needs for the year, operating both as capital, public societies participated by the communal Administration.

2. The income they have to apply to the respective budgets for the full amount of building rights, so it cannot meet obligations by means of reduction of the rights, except for returns of undue.

Article 63 the beginning of year 1. The budgets are approved every year, before 31 December, to govern during the next year, without prejudice to the provisions of article 70.

2. The budget exercise coincides with the calendar year and are charged: A) to the State of income: a) the rights cleared during the financial year in question, whatever the period from which derived.

b) until January 31, charged rights next, although it's been bumped off in previous years.

B) to the State of expenses: a) the obligations cleared off during the same exercise, although authorized expenses come in previous exercises.

b) the duties paid until January 31st next, as long as they correspond to expenses cleared off before the end of the budget year.

2. The remnants of budgetary credits are cancelled at the end of the budget year, saved the provisions article 64.3.

Article 64 the principle of specialty (qualitative, quantitative and temporal) 1. Each credit is intended exclusively to the expenditure specified in the respective budget, with the exception of the modifications that can be approved in accordance with article 71.

2. The credits entered in the United States costs, except in the case of supplements of credits and credit extended pursuant to articles 72 and 73 respectively, have a limited scope and binding in terms of concept for government expenditures, and at the level of program for investment costs, although there are sponsors, and, as a result , you cannot authorize the amount of expenses which exceed the budgetary credits in accordance with the respective connection.

3. In charge of credits entered in the respective budget can only be contract obligations to liquidate during the budget exercise. However: A) apply to the credits of the current budget, at the time of issue of payment orders, the following obligations: a) The resulting from the settlement of arrears in favour of staff included in the payroll budgets.

b) derived from previous years and cleared off during the period in question and that they should have been charged to expandable credits.

B) are incorporated in the budget for the following financial year, by agreement of the plenary of the Council of common or of the respective boards of Directors of public companies, according to the communal cases: a) The extraordinary credits, credit and supplements approved credits transfers during the last quarter of the budgetary exercise and not cleared, completely or partially, during that same year.

b) credits for long-term expenses and not cleared, completely or partially, during the budgetary exercise.

c) the credits for real investment not committed until December 31, multi-annual.

of The current spending commitments credits) emparin specific and that, for reasons justified, are not able to perform during the same financial year.

e improper refunds of payments) and the contributions of entities completed during the last quarter of the budget exercise.

65 Article principle of non-affectation of income the income of communal finances are destined to satisfy either the set of its obligations, except for special contributions or have established by law or by regulations of the destination or the affectation to certain purposes.

Section 2a. Budget structure Article 66 rule budgets conform to the structure of the budget of the general administration.

Article 67 of the State revenue and expenses the State of revenue and expenses has to adapt to the economic classification adopted by the general budget of the State, as defined in article 18 of the general law on public finance.

Section 3a. elaboration and approval Article 68 of the Training project. Ancillary documentation 1. The Minister in charge of finance, in accordance with the guidelines received from the common, prepares the budget project of the communal Administration with proposals made by all departments.

2. The proposed budget of the communal Administration contains the text articulated proposal of the regulations of the budgets and the United States of income and expenses; attached, in addition, the following documents: a) An explanatory notes to justify the most important changes compared to the previous budget and, especially, if this is the case, the need for new borrowing, specifying the possible features and modes.

In the memory you have to expose the bases used for the evaluation of the planned income, credit operations, the sufficiency of credits to meet the compliance with the obligations required and the costs of operation of the services and, as a result, the cash balance of the budget.

b) a report on the need of the credits for capital movements and transfers that should include, in addition to its amount, the detail of the features and financial conditions in which they expect to conclude with special reference to the financial burden of the ordinary before and after their completion.

c) a report on the debt that includes, as a minimum, the information necessary for the application of the third chapter of the third title of this law.

of) any other information that the plenary of the Common deems appropriate.

3. The boards of Directors of public companies participated by the communal Administration approve their programs of action projects, investments and financing and are reported in the communal Administration through the Department responsible for Finance before September 20.

Article 69 Submission of the project and approval of the regulations of the communal budget 1. The Minister in charge of finance submits the draft budget to the Full of the ordinary, because this the examine and approve it.

2. The approval of the project by the plenary Assembly of the ordinary in the conversion in regulations of the municipal budget.

3. Without prejudice to the need for a global approval of the project, including the integrated text of the regulations and all the bases of execution, the plenary of the Common expenses and States approved allocations in terms of concept, program


in the case of investment expenses.

4. The budgets must be approved so that the States of expenses and income statements are balanced.

Article 70 Overtime budget 1. If before the end of the year, the plenum of the communal budget does not endorse Common Regulations are carried over automatically for dozens of budget the previous year parts with regard to their ordinary expenses, as well as ultimate credits the text articulated from the regulations of the budget and the bases of execution.

2. The extension does not affect the credits for expenses corresponding to these patients who have completed during the year of the extended budget.

3. The consuls, with the prior agreement of the plenary of the ordinary can put into effect the investment expenses provided for in the draft budget of the Municipal Administration pending approval and that had already been approved with the character of long-term costs.

4. The Chairmen of the boards of Directors, with the prior agreement of these same tips, public societies participated by the communal Administration, also have the right mentioned in the previous paragraph 3.

Section 4a. Modification and extension of the budgetary credits Article 71 qualitative Modification: extraordinary credits 1. When you need to contract obligations that involve expenses not included in the budgets and that, due to their need and urgency, cannot be or not appropriate to defer until the following year, the consuls can arrange the presentation of a project of extraordinary credit regulations for approval by the plenary Assembly of the ordinary.

2. The project of regulations of extraordinary credit must include the determination of the specific revenue intended to finance the extraordinary credit and they can be: more collection of income with respect to the envisaged; transfers of other credits that you love reduïbles; application of special contributions; new indebtedness; decrease of the Treasury or selling real property. The project must be accompanied by an explanatory report to justify the necessity and urgency of carrying out the work or provide the service in question.

3. extraordinary credits cannot be approved by the fact of having contracted obligations without budget except in cases of advances of funds referred to in article 76.

4. Is not considered extraordinary credit funding through credit transfer, regulated by article 74, of ordinary expenses not included in the budget but provided formally and generally at the level of concept in the budgetary structure.

Article 72 quantitative Changes: (I) credit supplements 1. When required the provision of contract obligations that involve costs which is insufficient to meet them and when, due to their need and urgency, cannot be or not appropriate to defer until the following year, the consuls can arrange the presentation of a project of regulations of credit supplement for approval by the plenary Assembly of the ordinary. Applies in this case paragraph 2 of article 71.

2. credit supplements cannot be approved by the fact of having contracted obligations with insufficient budget except in cases of advances of funds referred to in article 76.

3. It is not considered credit supplement complementary funding, through credit transfer is regulated by article 74, of ordinary expenses already included in the budget.

Article 73 quantitative Modification: (II) credits which Have the character of expandable, up to a sum equal to the amount of the obligations you need to compromise, the credits for which you set the text expressly articulated and taxativa of the regulations of budgets and that they are in one of the two following cases: a) the amount of Expenses which due to their nature, it is difficult to forecast at the time of approving the budget.

b) publicly funded Expenses the affectation of income determined in accordance with Article 65.

Article 74 quantitative Modification: (III) credit transfers 1. Transfers related to cost of capital is disbursed as the extraordinary credits and the credits, pursuant to articles 71 and 72.

2. The transfers relating to ordinary expenses, for the purposes expressed in the article 71.4 and article 72.3, may be agreed by the consuls with the following limitations: a) can refer only to the credits included in the same Department.

b) cannot affect the credits for remuneration of staff, nor the financial costs, nor the credits approved by the University's extraordinary credit or credit supplements.

c) cannot reduce credits for expenses for grants nominatives or augmented by additional charges or credit transfers.

d) cannot diminish expandable credits.

3. The consuls can delegate the authority provided in the previous sections on the Minister responsible for finance.

Article 75 generation of credits can generate credits, or if it is the case of extension credits within the State budget expenditure of the revenue arising from the following operations: a) contributions of natural or legal persons required in accordance with the legislation in force, to finance expenses along with the common.

b) disposal of common goods.

c) provision of services.

d) Reimbursement of loans.

Article 76 early Use of credits: advances of funds 1. In cases of extreme urgency, the full of the ordinary can authorise the consuls to legitimise the advances of funds in order to finance expenditure not equipped or with insufficient endowment and up to a maximum limit of 5% of the State expenses.

2. These advances must be subject to subsequent ratification with the approval of special credits or credit supplements as required.

3. If the plenum of the University does not endorse the Common extraordinary credit or credit supplement, advances of funds have been canceled by the credits of the respective Department, the reduction of which results in less disturbance to public service.

Article 77 the temporary Extension of credits: multi-annual expenditure 1. The long-term costs can be spread over a maximum of five years and can refer to both ordinary expenses as capital expenses.

2. The multi-annual expenditure must be approved by the plenary of the common in the regulations of the annual budgets or in a separate regulations, accompanied by an explanatory report.

3. However, the plenary of the Common multi-annual expenditure for supplies currents can be decreed, leases of personal property and real estate, the provision of


services and technical assistance provided, however, that the regulations of the budgets you set the event and the maximum amount for the year.

4. The multi-annual spending approved during the year are paid on the basis of their inclusion in the budget for the following financial year. However, when the corresponding regulations so specify, you can start the projects and actions referred to if there are anticipated enough credits in the current budget. Any modification of the budgetary credits as a result of the inclusion of multi-annual expenditure must conform to the provisions of articles 71 to 74, inclusive.

5. The existence of multi-annual expenditure obligate the University to include the credits in the next budget if they have planned execution times and annual involvement of amounts. Otherwise, the full of the ordinary should determine the amount attributed to each exercise in drawing up the budget.

6. If you do not follow the standard of the previous section, the Heart of the ordinary you have to justify it in the report attached to the communal budget project.

7. The rule of paragraph 5 of the present article is of general application though vary the terms and conditions set out in the multi-annual expenditure regulations tecnicoadministratives. These changes have been included, such as proof of expenses other than those foreseen in the report mentioned in the previous section.

Section 5a. Enforcement of the State of income Article 78 of the administrative procedure implementation of economic rights: the execution phases of each economic law must conform to the relevant regulations.

Section 6a. Enforcement of the State of costs Article 79 Administrative Procedure of execution of expenditure: expenditure budget management phases is done in the following phases, the content of which is established in the general law of public finance: a) spending Proposal b) Authorisation of expenditure c) commitment of spending) Proposal of payment e) payment Proposal f) Liquidation of g) material or common cash Payment can , in the manner established by the regulations, and include in a single administrative act two or more phases of execution of the listed in the previous section.

Article 80 of expenses 1. The right to issue proposals for expenditure corresponds to the consuls and directors, which have sent to the Department in charge of finance, for the purposes of audit and accounting.

2. The competence to authorize expenses corresponding to the consuls or the full of the ordinary, until the quantitative limit determined by each year to the text articulated from the regulations of the municipal budget.

3. The organs corresponding communal administration managers have sent their spending commitments and their settlements of expenditure of the Department in charge of finance, for the purposes of audit and accounting.

4. The commitments of expenditure must be accompanied by the appropriate documentation or references demonstration of compliance with the regulations of the contract.

5. The settlements of expenditure must be accompanied by a certificate of work, invoice or document attesting to the analogous, including the Declaration of the person responsible in the sense of having executed the work, provided the service or received the supply or acquisition of compliance.

6. The full of the ordinary can approve the models of documents required for the implementation of administrative procedure of expenses, in accordance with the criteria of maximum simplification and least bureaucratic cost.

Article 81 Arrangement of payments: payments in firm and to justify 1. Once you have paid the expense, the consuls have to propose the payment of an obligation. Excepts of the prerequisite of liquidation: a) urgent payments, which, however, need in any case under an authorization or an expenditure commitment and resolution of consuls, communicated to the Department in charge of finance.

b) to justify payments to which it refers in paragraph 5 of this article, and they require, however, the prior authorization of the relevant expenditure.

2. The ordering of payments corresponds to the Minister in charge of finance, who may delegate to another Member. However, if the Minister responsible for finance considered that the issue to which the payment refers have sufficient importance to justify the procedure may take it to deliberation and resolution of the plenary of the common. In any case, the consuls can be booked the ordering of certain types of payments or of specific payments.

3. The payment orders are extended on behalf of the creditor directly, except in cases of payments to justify and cases of endorsement, it is on behalf of the endossatari and it is noted the endorsers.

4. The organization of payments is in strong as a general rule, and to justify when it cannot be accompanied by supporting documentation at the time of its issue. Articulated text of the regulations of the communal budget must indicate the cases in which are allowable are payments to justify.

5. the recipients of the payments to justify are required to submit the settlement, with the appropriate document checks, the amounts received, within a period of three months and, in any case, before the 15th of January of the following year. After this period and a further month without having it actually incoa file against those responsible.

6. The amounts resulting from payments to justify must enter, in the cases determined by the integrated text of the regulations of the communal budget, in a bank account designated by the Minister responsible for finance and under the control of the Communal Intervention.

7. Payment must be material, head down, the signature of the Minister responsible for finance or his representative, by another Director.

8. The payment can be made by cash, cash documents proving the payment, cheques, bank transfers or, if the person concerned expressly asks for it in writing, through compensation with economic rights of communal finances against the same creditor.

Section 7a. Liquidation of the communal budget Article 82 Liquidation budget: shape and scope the budget of each exercise is liquidated in regard to the collection of rights and the payment of the obligations on the 31st of December of the calendar year, as revenues and payments are in charge of the Treasury, according to their respective contractions.

The communes must make the liquidation of its budget before the day


first of March of the following year.

The approval of the settlement of the budget corresponds to the plenary of the common with the previous report of the intervention.

In the case of liquidation of the budget with remnant of negative cash flow, full of the ordinary should proceed, in the first session that carried, in the reduction of expenses of the new budget by an amount equal to the shortfall occurred. This reduction can only be revoked by resolution of the plenum of the ordinary, at the proposal of the Consul and the preliminary report of the intervention, when the normal execution of the budget and the situation of the Treasury permits.

If it is not possible to reduce costs, you can arrange a credit operation by its amount, provided that the conditions set out in the law on public finance.

If you have not adopted any of the measures set out in the previous sections, the budget for the following financial year must pass with a surplus of initial amount not less than the shortfall mentioned.

The settlement of each of the budgets and financial statements public, communal societies once their approval, it gives full account of the ordinary in the first session that carried.

Article 83 closing Operations, the Minister in charge of finance, with the prior agreement of the plenary of the Council of the ordinary, you can dictate every year, before 1 December, appropriate instructions relating to the closing of budgets, particularly for the purpose of facilitating and standardizing the compliance with the provisions of article 63.

Section 8. Budgetary control 84 Article purpose and modalities 1. The budgetary control has the purpose to check and verify if the execution of the budget is adjusted to the rules and principles, legal or of another nature, which govern, the objectives that are intended to and in the economicitat and efficiency of municipal spending.

2. The budgetary control adopts the modalities of control of legality, control of economic opportunity, financial control, control of efficiency and political control.

Article 85 of legality Control 1. The control of legality aims to ensure compliance with the law through the investigation of all acts, the documents and the records of the communal Administration and public companies participated by the communal Administration with emphasis on communal finances, which determined the settlement of rights and obligations of economic content, as well as the income and payments that may arise , and the collection and application of flow.

2. The exercise of the auditory function includes: a) The critical intervention or of any act, document or record likely to produce economic rights or obligations or movement of values.

b) The formal and material intervention of payment.

c) the performance and verification of material investments and of the application of the subsidies.

3. If in the course of the auditing function the controller body manifests itself in disagreement with the background or with the form of the events, documents or records examined, must formulate their objections in writing, before the adoption of the agreement or resolution.

4. When the disagreement relates to the recognition or the clearance of rights in favour of the ordinary, the opposition is formalised in a note of objection that in no case suspend the processing of the file.

If the object affects the disposition of costs, the recognition of obligations or the ordering of payments, suspended the processing of the file until it is fixed in the following cases: a) When based on the lack of credit or a credit proposal inadequate.

b) when you have not been fiscalitzats the events that gave rise to payments.

c) in the case of default in the case of requirements or procedures essential.

d) When the objection is the result of checks of materials, supplies, and services.

5. When the governing body who affects the objection there is in accordance to the Consul to resolve the discrepancy, and its resolution is Executive. This ability is not may delegate in any case.

Notwithstanding the provisions of the preceding paragraph, the plenary of the common resolution of discrepancies when are based on lack or inadequacy of credit or referring to obligations or expenses the approval of which is their competition.

6. The auditor raises a full report of all the resolutions adopted by Consul contrary to the objections filed, and also a summary of the main anomalies detected in terms of income.

7. Are not subjected to prior intervention inventariable material expenses, contracts under the periodic and other successive treatment, once involved in the expenditure corresponding to the initial period of the Act or contract which derived or its modifications nor other expenses under 3,000.00 euros according to the current regulations are made effective through the system of fixed cash advances.

The Heart of the ordinary it may be decided, on the proposal of the Consul and the preliminary report of the Auditor, the prior intervention is limited to the following aspects: you have enough credit and I will suggest the proper. In the case of expenditure commitments of multi-annual character, he also has to check the compliance with article 77.

That the obligations or expenses are generated by competent body.

The other issues due to its significance in the management process determined by the plenary of the common proposal of the Consul.

The auditor may formulate supplementary observations it deems appropriate, without in any case have suspensive effects in the processing of the corresponding records.

The obligations or expenses subject to limited taxation should be the subject of another intervention later carried out on a representative sample of the events, documents or records audit sampling techniques.

Internal control bodies that carry out the audits later must issue a written report with all the observations and the relevant conclusions. This report is relayed to the plenary of the common with the observations of the bodies managers.

The Commons can determine, by agreement of the plenary, the replacement of the previous investigation of rights for consistency in accounting and later check actions through techniques of sampling or audit.

Article 86 the Control of economic opportunity 1. Control of economic opportunity has purpose: to) Determine, both qualitatively and quantitatively, the consequences


the realization of certain expenses would be for communal finances and the execution of the budgets, and in particular, the estimate of new expenses that foreseeably would result which is object of control.

b) the incidence of a particular expense on the communal economy and the short-term situation.

2. This type of control takes place as a result of the proposed expenditure and is formalised, when necessary, by means of a report in each case of the Communal Intervention, without prejudice to the global reports that this intervention may deem appropriate.

Article 87 financial Control 1. The financial control is to check the financial performance of public companies participated by the communal Administration and of the private entities that receive grants, loans, guarantees and other aid in charge of budgets.

This control is intended to report on the appropriate presentation of financial information, compliance with the rules and guidelines that are applicable and the degree of efficiency and effectiveness in the achievement of the objectives.

2. The financial control is managed by the Communal Intervention at least once a year, by means of audit procedures that replaced the previous audit of the corresponding operations and consequently to the checking of the income and payments made, check the stock material and the verification of accounting books, balance sheets and operating accounts and other accounts, and States that they are mandatory.

As a result of Communal Intervention carried out the control produces a written report with all the observations and the conclusions to which they dedueixin. This report, together with the allegations made by the audited body are sent to the plenary of the Common to examine.

Article 88 The effectiveness of control Control effectiveness aims to the periodic verification of the degree of fulfilment of the objectives as well as the analysis of the cost of operation and the performance of the services or their respective investments.

Article 89 exercise of the functions of control the persons responsible for the auditing function and that will designate to carry out the financial control and efficiency, they exercise their function with full independence and can pick up all the information they deem necessary to carry out the test and the check of the books, accounts and documents necessary to verify the arqueigs and counts , and request of the person who corresponds, when the nature of the event, document or file that you have to be involved requires it, the technical reports and advice that love needed.

Article 90 political Control 1. Political control is exercised by the ordinary on the implementation of the budgets and the compliance with provisions of budgetary nature.

2. Political control during the execution of budgets can be carried out: a) Via interpel·lacions and inquiries & questions to the plenary of the common, motions of censure and commissions of inquiry.

b) by means of the examination of the status of implementation of budgets and their modifications, and also of the movements and the situation of the Treasury.

3. Political control after the liquidation of the budgets is carried out with the examination and approval, if appropriate, of the communal accounts within the six months following their presentation.

Chapter IV. Communal intervention Article 91 nature and scope The Communal Intervention is the Center: a) Director of the administrative accounting.

b) Owner of the controls of legality, of economic and financial opportunity.

c) responsible for the functions of study, report and advise that, in accordance with the law, assigned to it.

Article 92 Organization 1. Communal intervention is organically attached to the Commission in charge of finance and its organic structure is set, at the proposal of the Inspector, the full communal of the ordinary, with the prior approval of the Minister responsible for finance.

2. The municipal auditor is the head of the Municipal Intervention. Is appointed by the plenary of the common, at the proposal of the consuls, the Minister in charge of finance, heard for the duration of the mandate territories, without prejudice to the possibility of resignation or termination.

Article 93 Functions 1. Communal intervention has, for the exercise of its functions, in full independence, and both the municipal auditor as mediators delegates need to be cared for by any organ of the communal Administration who so request, in the well-founded demands to make of data, reports or documentation.

2. The Communal Intervention, as a director of the administrative accounting, the exercise of the following functions: a) to review the records of income and expenditure accounting in all its phases, which reflect the movements of public Treasury flows eventually.

b) Form and write the General accounts to present them to the plenary of the common.

c) Submit for the approval of the plenary of the Common modifications to the general plan of public accounting that are considered appropriate to adjust it to the structure and the functioning of the ordinary.

d) Inspect the accounts of public companies participated by the communal Administration, and also verify the accounts of the entities obliged to present the fact of receiving budgetary subsidies.

e) elaborate the economic accounts of the public sector depending on the communal Administration.

3. The Communal Intervention, as the owner of the controls of legality, of economic and financial opportunity the following functions: to) Monitor the acts, the documents and the records of the communal Administration, the entities of public law and public societies participated by common with impact on communal finances, in accordance with article 85.

b) inform the plenary of the common, where appropriate, on the economic opportunity costs, in the terms established by article 86.

c) Conduct audits that are carried out for the purposes of financial control is regulated in article 87.

4. the functions of the Communal Intervention study, report and advise the following: A) in relation to the communal budget and its management: a) to collaborate in the development of the project if it is required for this purpose.

b) verify and authorize the settlement of budgets.

c) Reported on proposals of indebtedness, permits the full of advances of funds and the projects of special credits, credit transfers and supplements.

d) File resources, if necessary, against acts of public revenue management.


e) settle for previously acts, the documents or the resources that produce obligations and movement of public flows, and especially the return of undue and prescribing rights and obligations and, in general, protecting the economic interests of the communal administration.

f) report on the resources presented in common, and that refer to matters of economic and financial nature.

g) Inform the fulfilment of debt limits established in the present law.

B) in relation to the contracting of works and services, supplies and acquisitions: a) Ruled on the projects of contracts, tender terms and budgets of works, services and acquisitions of all kinds.

b) form part of the tables of recruitment.

c) Reported on proposals for resolution of contracts.

d) observations or objections to the proceedings and checking services, works and acquisitions.

C) With respect to staff: a) inform about the competitions of access to communal public function and personal contracts.

b) Monitor the personnel payroll.

D) in relation to the heritage: a) directed the training and updating of the patrimonial inventory and license the inventories of all kinds.

b) Inform the proposed alienation of property and rights of any nature.

E) the rest of functions and advice that assigned the full Common provided that they are compatible with the previous ones.

Chapter v. public accounting Article 94 general principle 1. The communal Administration is subject to the regime of public accounting in the terms provided for in this law and in the regulatory provisions that set forth.

2. subject to the regime of public accounting entails the obligation to pay the respective operations, whatever their nature, in the heart of the ordinary.

Article 95 For the purposes of the public accounting are: a) to record the execution of budgets.

b) determine the movements and the situation of the Treasury.

c) Reflect the composition, the variations and the situation of heritage.

d) Provide the necessary data for the training and the accountability of the communal accounts.

e) Provide the appropriate information for the elaboration of the economic accounts of the public sector depending on the common, embodied in the general plan of public accounting.

f) Offer economic and financial information necessary for the adoption of political and administrative decisions.

g) Provide the data necessary for the calculation and monitoring of borrowing limits set out in this law.

Article 96 organization to the Communal Intervention corresponds to lead and develop the financial accounting and monitoring in terms of the financial execution of the budget in accordance with the General rules and dictated by common.

Article 97 Scope of management accounting: special accounts and communal accounts 1. Accounting management is specified and is formalized in the following way: a) Accounting Management of income, for the stages of liquidation and payment, as a result of which forms the income account, divided into two parts, one of the State's management of income and the other Treasury rights.

b) management accounting expenses, referring to the authorization phases, commitment, settlement, arrangement of payments and payments effective, as a result of which form the account of expenses, divided into two parts, one of the State's management of costs, and the other of situation of the payment orders pending.

c) Accounting Management of Treasury, referring to the operations of collections and payments, both as budgetary extra-budget, as a result of which form the Treasury account, divided into three parts: collections and payments to the budget; extra-budget operations, and balance or existence of Treasury.

of Accounting Management of heritage, referred to the goods) of the assets at the start of the year, to the acquisitions and divestitures made during your course and to the situation existing property at the end of the period, as a result of which form the account of heritage.

e) management accounting debt, referred to the situation of the debt at the beginning and at the end of the year, as a result of which form the account of indebtedness.

2. the previous special accounts come together and rehash in communal accounts, of which two are made each year: the communal administration and public companies participated by the communal Administration.

Article 98 the accounting information the Minister responsible for finance must send the full of the common, on a quarterly basis and within the next quarter, a report explaining the execution of the budget of the communal Administration and their modifications, as well as the movements and the situation of the Treasury. The same task they have to perform the directors of the entities of public law Common to the respective budgets by the investee.

Chapter VI. Communal Treasury Article 99 Composition Are the Treasury of all financial resources, either money, are values or Common credits for both budget and extra-budget operations. These resources and the variations that experience are subject to audit and must be recorded according to the rules of public accounting.

Article 100 Organisation and functions 1. The Organization of the communal Treasury corresponds to Full of the ordinary, at the proposal of the Minister responsible for finance.

2. Within the organization approved by the plenary of each entity company or communal public law must establish the regime of their liquid assets in a manner coordinated with the communal Administration.

3. The functions assigned to the communal Treasury: a) Raise revenue and pay the obligations of communal finances.

b) Centralize all flow for bookkeeping purposes and values generated by budget and extra-budget operations, without prejudice to the existence of material auxiliary boxes.

c) other functions derived from the mentioned in the preceding paragraphs, or that there are reliable sources.

4. The functions of the communal Treasury can be made through banks if you agree to the full of the ordinary.

Chapter VII. Responsibilities Article 101 Classes of liability 1. The actions and omissions, both as directed culposes, resulting, directly or indirectly, economic damage to communal finances determine the requirement of civil, criminal and administrative liability, depending on the case.


2. civil liability involves the duty to indemnify communal finances by reason of the damage caused by the actions or omissions.

3. criminal responsibility is derived from the Commission of major or minor crimes or contravencions classified in the penal code and to the detriment of communal finances. Criminal liability entails always civil.

4. The administrative responsibility was born from the realization, on the part of the people at the service of communal administrations, of actions and omissions classified as faults in the regulations of the public function and, in particular, in chapters V and VI of the code of the administration.

5. Are excluded from this chapter tax offences regulated in other laws, without prejudice, where appropriate, standards of criminal responsibility if, during the tax infringement, committed a crime or a minor or a contravention as typified in the criminal code.

6. Liability in the case of multiple managers is joint, except in cases of cheating or fraud, in what is solidarity.

Article 102 actions and omissions producers of special administrative and civil responsibility Are actions and omissions that involve a special civil and administrative liability towards the communal finances: a) the discovered of accounts or embezzlement that affects the having to finance community.

b) the non-compliance, on the part of political offices or civil servants or hired, of the regulations for the management, inspection, and raising the deposit in the Treasury of the economic product of communal finances.

c) the authorisation, the obligation or the payment of costs and the ordering or making payments without budgetary credit or insufficient credit, or infringing of any way the regulations of administrative procedures of planning of expenses and payments.

of improper payments provocation).

e) the lack of justification, within the deadlines set, of the communal finances.

non-f) the, by the auditor or auditors ' delegates, through grief, guilt, negligence or inexcusable ignorance, the duty to save their performance in the respective file with comment written on the illegality or the disagreement of the object of the audit.

g) any other acts or omissions that involve non-compliance with the norms of this law and of the provisions that the reglamenten or deployed.

Article 103 liability Transcript 1. The liability arising from the actions and omissions referred to in the previous article and the code of the administration you have to elucidate or clarify through administrative records, handled with hearing of the interested parties and in accordance with the rules of the code of the administration.

2. The agreement of opening and the decision of the administrative file, as well as the appointment of instructor, correspond to the plenary of the common, if the person is female staff member or hired by this company or entity of public law, communal and the Minister in charge of finance, if the person is described or taken out of the communal Administration.

Article 104 damages 1. The decision of the administrative file, even in cases in which constitutes a procedure prior to the requirement of criminal liability, it should pronounce on the damages and harm caused to the finance community, and those responsible have the obligation to compensate for this cause in the terms established in the code of the administration.

2. The resolutions of administrative records can be appealed.

First additional provision, the law of general budget may change the maximum and minimum of the tax rate and the tax payments of taxes.

Second additional provision until it develops a specific law on the special contributions, are common can establish special contributions in accordance with the provisions set out in the third chapter of the second title of this law.

First transitional provision all the facts, acts or procedures that are in course of realization on the day of entry into force of this law shall be governed by the previous rules.

It excepts the rules of this law relating to the prescription and to the sanctions in all that is more favorable to administered.

Second transitional provision 1. The common which, at the date of entry into force of the present law, exceed the maximum amount of indebtedness foreseen in this law, have to adapt in a period of a maximum of 10 years on its level of indebtedness to the requirements contained in this law. In relation to this excessive debt, is not applicable in the Commons section 4 of article 47 of this law.

2. During the period of adaptation set in paragraph 1, the common need to reduce the amount that exceeds each of the limits which would be applicable under the present law, progressively, at least by 40% every 4 years.

3. The Court of Auditors monitors the process of adaptation to the level of indebtedness of Commons provided in this law. At the same time inform the General Council of the amount of debt and the situation of each common.

Third transitional provision within a period of 10 years, the Government and the communes make a cadastre of the national estate. The cadastre should be allowed to identify the properties of the national territory and also establish a valuation from the market value by the same technical criteria. While this land is not developed and approved, the estate tax is levied property not built to a tax rate of 0%.

Repealing only abolishes all rules with the rank of law or that are opposed to the contents of the present law.

Single final provision this law shall enter into force within 15 days to be published in the official bulletin of the Principality of Andorra.

Casa de la Vall, 27 June 2003 Francesc Areny Casal Syndic General Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.

Jacques Chirac President of the French Republic, Co-prince of Andorra