Productive Recovery Program Permanent Character - General Provisions - Updated Standard Text

Original Language Title: PROGRAMA DE RECUPERACION PRODUCTIVA CARACTER PERMANENTE - DISPOSICIONES GENERALES - Texto actualizado de la norma

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image inicio sitio infoleg MInisterio de Justicia y Derechos Humanos
PRODUCTIONAL RESUPERATION PROGRAMME

Law 27264

Permanent character. General provisions.

The Senate and Chamber of Deputies of the Argentine Nation assembled in Congress, etc. sanction with force

Law:

Continuous Character of the Productive Recovery Program

ARTICLE 1 — Introduce the Productive Recovery Programme that was created by the Ministry of Labour, Employment and Social Security Resolution No. 481 of 10 July 2002 and its amendments and supplements.

ARTICLE 2 — The maximum monthly fixed amount provided for in the regulation for the benefits provided by the program will be raised by fifty percent (50%) in cases involving Micro, Small and Medium-sized Enterprises (MiPyMES), according to the terms of Article 1 of Law 25.300 and its complementary standards.

ARTICLE 3 — Invite the Ministry of Labour, Employment and Social Security to carry out all necessary actions so that access to the benefits of the Productive Recovery Programme can be carried out through simplified process for the Micro, Small and Medium-sized Enterprises, taking all necessary measures to ensure that access to the benefits is made promptly.

PART II

Special tax treatment for the strengthening of micro, small and medium enterprises

ARTICLE 4 Special tax treatment. Subjects in the category of Micro, Small and Medium-sized Enterprises, under the terms of Article 1 of Law 25.300 and its complementary standards, shall enjoy special tax treatment, in accordance with this Title, in the forms and conditions established by the regulation.

ARTICLE 5 — Minimum win. Exclusion. It will not apply to the Micro, Small and Medium-sized Enterprises the Tax on the Minimum Wage (Title V of Law 25.063 and its modifications), with effect for the fiscal exercises that begin from 1 January 2017.

ARTICLE 6 Benefits. Credit and Debit Tax. The Tax on Credits and Debits in Banking Accounts and Other Operators, established by Article 1 of the Competitiveness Law 25.413 and its modifications, which had been effectively entered, may be computed in a hundred percent (100%) as payment of the tax on profits by companies that are considered “micro” and “small” and in a half-small industry (50%) by the “small”

(Note Infoleg: by art. 2nd Decree No. 409/2018 B.O. 7/5/2018 states that the payment on account referred to in the first paragraph in fine of this article will be increased to SESENTA BY SENTO (60%). Monitoring: from the day following the date of its publication in the Official Gazette, having effect on advances and affidavits of the Tax on Livestocks and/or the Tax on Minimum Wage or the Special Contribution on the Capital of Cooperatives for fiscal periods beginning on 1 January 2018, due to the tax credits originating in the taxable facts from that date on 1 January 2018.

The calculation of the payment may be made in the annual affidavit of the income tax or its advances. The unrepaired remnant may not be subject, under any circumstances, to compensation with other taxpayers or requests for refund or transfer to third parties.

In the case of tax credit for the profits of the subjects not covered by article 69 of the law of that tax, the payment to the account shall be attributed to each of the partners, associates or shareholders, in the same proportion in which they participate in the tax results of those.

However, the imputation referred to in the preceding paragraph shall only proceed, until the amount of the increase in the tax obligation produced by the incorporation into the individual affidavit of the proceeds of the entity that originates the receivable.

Where the tax provision provided for in the preceding paragraphs plus the amount of advances determined for the income tax, calculated in accordance with the respective rules, exceed the estimated obligation of the period for such taxes, the taxpayer may totally or partially reduce the amount to be paid in advance, in the form, time and conditions established by the Federal Public Income Administration, autarchic entity within the Ministry of Finance and Finance.

The amount of the computed tax as a tax credit shall not be deducted for the purposes of determining this tax.

ARTICLE 7 — Micro and Small Businesses, in accordance with the terms of Article 1 of Law 25.300 and its supplementary rules, may enter the balance resulting from the affidavit of the value-added tax, at the expiration date for the second month immediately following that of its original maturity, under the conditions established by the Federal Public Income Administration.

ARTICLE 8 — Compensation and return. In the event that the beneficiaries of this law have the existence of credits and debtors, their compensation shall be in accordance with the regulations in force, taking into account the operating guidelines stipulated by the Federal Public Income Administration, through the so-called Tax Accounts System. If compensation is not possible, those may be returned, at the request of the person concerned, and attentive to the procedure provided by the collection agency.
Authorize the national executive branch to issue public debt bonds, whose subscription will be voluntary, in order for the Federal Public Income Administration to carry out the refund provided for in the previous paragraph for the existing balances prior to the sanction of this law.

ARTICLE 9 — Instruct the Federal Public Income Administration to implement procedures to simplify the determination and income of national taxes for Micro, Small and Medium-sized Enterprises for which it will carry out the actions necessary to develop a single window system.

ARTICLE 10. — Focus on the national executive branch to implement programmes to compensate Micro, Small and Medium-sized Enterprises in the border areas that it establishes for asymmetries and economic imbalances caused by competitive reasons with neighbouring countries, for which it can apply tax tools and incentives to productive and tourist investments in a differential and temporary way.

ARTICLE 11. — Note that the tax benefits to the Micro, Small and Medium Enterprises granted by this law will have a differential of at least 5 per cent (5%) and at least 15 per cent (15%) when they develop in activities identified as belonging to a regional economy. The Ministry of Agro-Industry and the Ministry of Finance and Finance are instructed to establish the scope of the sectors and the benefits mentioned here.

PART III

Investment promotion

CHAPTER I

General provisions

ARTICLE 12. - Investment Development Scheme. Beneficiaries. Refer to the Investment Development Regime for Micro, Small and Medium-sized Enterprises, in the terms of Article 1 of Law 25.300 and its complementary standards, to make productive investments in the terms provided for in this Title.

ARTICLE 13. - Productive investments. Concept. For the purposes of the regime established by the preceding article, it is understood as productive investments, those carried out by capital assets or infrastructure, in the forms and conditions established by the regulation.

Investments in capital goods must be aimed, as appropriate, at the purchase, construction, manufacture, processing or final import of new or used capital goods, excluding cars. Such goods must also have the quality of compensable for the tax on profits, including the acquisition of players, being understood by females, when they were of pedigree or pure by cross, as established by the regulation.

ARTICLE 14. - Exclusions of the regime. The treatment provided by the present regime may not be accommodated in any of the following situations:

(a) Declared in a state of bankruptcy, in respect of which the continuity of exploitation has not been provided, in accordance with Act No. 24,522 and its amendments;

(b) Complaints or lodged criminally on the basis of Act No. 24,769 and its amendments, in which respect the corresponding tax requirement for the lifting of proceedings has been formulated prior to the externalization of accession to the regime;

(c) Pronunciated formally, or criminally charged for ordinary offences that have connection with the failure to comply with their tax obligations or those of third parties, in which respect the corresponding tax requirement for lifting to trial has been formulated prior to the externalization of accession to the regime;

(d) Legal persons, including cooperatives, where appropriate, their partners, administrators, directors, trustees, members of the monitoring council, advisers or those holding equivalent positions, have been formally denounced or criminally charged for common crimes that have connection with non-compliance with their tax obligations or those of third parties, in respect of which the corresponding tax requirement for lifting to trial prior to the externalization has been formulated.

The occurrence of any of the circumstances mentioned in the preceding subparagraphs, produced after adherence to the benefits set out in this Title, shall be a cause for the total expiry of the fiscal treatment in question.

ARTICLE 15. - Deadline. The provisions of this Title shall apply to productive investments between 1 July 2016 and 31 December 2018, both inclusive dates.

ARTICLE 16. - Fiscal stability. The Micro, Small and Medium-sized Enterprises will enjoy fiscal stability during the time period established in the previous article.

It reaches all taxes, understood by such direct taxes, tax rates and contributions, which have as passive subjects to the Micro, Small and Medium Enterprises.

The Micro, Small and Medium-sized Enterprises will not be able to see their total tax burden increased, considered separately in each particular jurisdiction, at the national, provincial and municipal levels, provided that the provinces accede to this Title, through the dictation of a law in which they shall expressly invite the municipalities of their respective jurisdictions to dictate the relevant legal norms in the same sense.

ARTICLE 17. - Time of productive investment. For the purposes of the present Title, productive investments are considered to be made in the fiscal year or annual exercise in which their qualification or implementation are verified and their impact on the production of taxed income, in accordance with the law of income tax (t. 1997) and its modifications. Exceptionally, partial qualifications may be requested in accordance with the mechanisms to enable regulation for this purpose.

ARTICLE 18. - The profit. The benefits enshrined in this Title shall expire when, in the fiscal year in which the benefit was obtained, and the following shall reduce the level of employment, in the forms and conditions established by the regulation.

If the goods or works that gave rise to profit cease to integrate the assets of the company will not be causal to expire:

(a) Replacement of the good by another when the value of the latter was equal to or greater to the sale price of the replaced asset or when its destruction was caused by a fortuitous case or force majeure, in the forms and conditions established by the regulation and;

(b) When one third of the life of the good concerned has passed.

ARTICLE 19. - Consequences of expiry. One or more cases of expiry must, as appropriate in each case, enter the income tax corresponding to the payment to the account whose calculation was unpaid or the amount of the tax bond applied is entered, the refund is cancelled. In both cases the compensatory interests and a fine equal to one hundred percent (100%) of the default tax shall be paid.

For this purpose, the Federal Public Income Administration shall issue the relevant intimation without the application of the procedure established by article 26 and subsequent of the law 11.683 (t. 1998) and its modifications, to which effect the determination of the debt shall be executed with the mere intimation of payment of the tax and its accessories by the tax agency without the need for any other substance.

ARTICLE 20. - Control regulations. The Federal Public Income Administration shall issue the control rules it deems necessary to verify the origin of the computation of the benefits set out in this Title, and may even implement the use of the franchise through a computerized current account, regardless of the category of the beneficiary company covered by article 1 of Act 25.300 and the object of the investment made.

ARTICLE 21. - Supplementary application regulations. In all matters not foreseen, the rules of the law on income tax (t. 1997) and its amendments shall be applied supplementally; of law 11.683, (t. 1998) and its amendments, and of the law on value added tax (t. 1997) and its amendments.

ARTICLE 22. - Rule time. The national executive branch shall regulate this law within sixty (60) days of its publication in the Official Gazette.

CHAPTER II

Payment on the tax on profits for productive investments

ARTICLE 23. - Scope of Application. Productive investments. The Micro, Small and Medium-sized Enterprises that make productive investments defined in Article 13 of this Law shall have the right to compute as a payment to account and even the amount of the obligation that is determined in respect of the fiscal year or annual period in question, the amount resulting from the application of the following article. The regulation shall provide the procedure to be applied by the partners of the companies or holders of single-person companies that qualify as Micro, Small and Medium-sized Enterprises in order to enable the payment to be computed in their annual obligation.

This benefit is incompatible with the sale and replacement regime enshrined in article 67 of the profit tax law (t. 1997) and its modifications, as well as other industrial or sectoral, general or special promotion regimes arranged in other legal bodies, whether specifically designed for the Micro, Small and Medium-sized Enterprises.

ARTICLE 24. - It matters computable. Applicable rate. The computable amount as a payment shall arise from applying the rate of 10 per cent (1 per cent) on the value of the productive investment (established in accordance with the rules of the law of taxation, (t. 1.997) and its modifications - carried out during the fiscal year or annual period, as appropriate, and may not exceed the amount determined by the application of the two per cent profit (2%) on the average of the annual revenues obtained The amount of such net income shall be calculated in accordance with the provisions of the value-added tax law (t. 1997) and its amendments.

In the case of micro, small and medium-sized manufacturing industries (tram 1) under Article 1 of Law 25.300 and its complementary standards, the percentage limit set out in the preceding paragraph will be increased to three per cent (3%).

ARTICLE 25. - Treatment for new businesses. When the Micro, Small and Medium-sized Enterprises that initiate their activities within the time limit set forth in Article 15 of this Law, undertake during the same productive investments and at the end of the fiscal year or annual exercise, as appropriate, in which those are materialized determine in the income tax the respective obligation to the extent that they cannot fully or partially compute the amount of the payment referred to in the account, calculated by the application of the ten per cent (10% of the tax) After five (5) fiscal years or annual periods after that in which the payment was made, the amount still remaining for that concept cannot be computed in successive years or years. The balance in no case will result in return for the beneficiary.

ARTICLE 26. - Net gain subject to tax. The benefit derived from the computation of the payment to account established in this Chapter shall be exempt from taxing on profits and, for the purposes of the application of the retention on a single and definitive basis established by the article added without number following article 69 of the law of tax on profits, (t. 1997) and its modifications, shall be deemed to constitute the corresponding profit in accordance with the general rules of that law.

CHAPTER III

Tax credit for investments in capital assets and infrastructure

ARTICLE 27. - Investment Development Regime. A special investment promotion regime for Micro, Small and Medium-sized Enterprises should be established for their tax credits in the value-added tax that had been originated in productive investments, as defined in article 13 of this law.

Those subject to the preceding paragraph; at the time of verification of the general expiry date established by the Federal Public Income Administration for the presentation of the annual affidavit of the taxation tax for the companies covered by article 69 of the law on taxation, (t. 1997) and its modifications, or to the human persons and indivisible successions, as appropriate, may apply for the conversion of the aforementioned taxation

ARTICLE 28. - Tax credit. Limitations. The tax credit bonus mentioned in the previous article may not be used for the cancellation of charges exclusively for the financing of funds with specific impact.

Nor can the bond referred to cancel debts prior to the effective incorporation of the beneficiary into the regime of this law be used and, in no case, any balances in his favour will result in refunds or returns by the national State.

ARTICLE 29. - Capital assets. Taxpayers' heritage. Capital assets covered by the present regime are those that review the quality of amortizable goods for the tax on profits.

The regime established in this Chapter shall not apply when, at the time of the request for the conversion of the balance in favour, capital assets do not integrate the assets of the taxpayers, except when it has provided fortuitous or force majeure, such as fires, storms or other accidents or sinisters, duly tested.

ARTICLE 30. - A supposition of leasing. When the capital assets are acquired by leasing, the tax credits for the canons and the purchase option may only be computed for the purposes of this regime after the date of general maturity for the presentation of the annual affidavit of the income tax for the period in which the above-mentioned option has been executed.

ARTICLE 31. - Fiscal cup. For the purposes of the regime contained in this Chapter, an annual tax quota for the conversion of tax credit bonds, which shall amount to pesos of five billion ($5,0000,000,000), which shall be allocated in accordance with the mechanism established by the national executive branch and the percentages available for capital goods and infrastructure works.

The national executive branch will report quarterly to the Budget and Finance Commissions of both Houses of the National Congress on the distribution of the quota established in this article.

The provisions of this Chapter shall have effect on tax credits whose right to compute is generated from 1 July 2016.

PART IV

Law reform 24,467 and 25.300

ARTICLE 32. - Definition of Micro, Small and Medium Enterprise. Replace article 1 of Act 25.300 with the following:

Article 1: This law is aimed at the competitive strengthening of micro, small and medium-sized enterprises that develop productive activities in the country, through the creation of new instruments and the updating of existing ones, in order to achieve a more integrated, balanced, equitable and efficient development of the productive structure.

The application authority shall define the characteristics of the companies that will be considered Micro, Small and Medium, contemplating, when justified, the specificities of the different sectors and regions and based on any, some or all of the following attributes of the same or their equivalents, occupied personnel, value of the sales and value of the assets applied to the productive process.

The application authority will review the definition of Micro, Small and Medium Enterprise annually in order to update the parameters and specificities contemplated in the definition adopted.

Micro, Small and Medium-sized Enterprises shall not be considered to be companies that, even by meeting the quantitative requirements established by the implementing authority, are linked or controlled by national or foreign companies or economic groups that do not meet such requirements.

The current benefits for Micro, Small and Medium-sized Enterprises will be extended to the associational forms formed exclusively by them, such as consortiums, transitory unions of companies, cooperatives, and any other form of association.

ARTICLE 33. - Registration of Micro, Small and Medium Enterprises. Replace article 27 of Act 24,467 with the following:

Article 27: The application authority shall establish a Register of MiPyMES Companies which shall have the following purposes:

(a) To have up-to-date information on the composition and characteristics of the various Micro, Small and Medium-sized Enterprises sectors, enabling the design of appropriate policies and tools for the support of these companies;

(b) To collect, register, digitize and safeguard the information and documentation of companies that wish or need to accredit, in front of the enforcement authority or any other public or private entity, the status of Micro, Small or Medium Enterprise in accordance with the guidelines established by the implementing authority;

(c) To issue certificates of accreditation of the status of Micro, Small or Medium Enterprise, at the request of the company, of national, provincial and municipal authorities.

In order to simplify the operation and development of the Micro, Small and Medium Enterprises as well as the access to the plans, programs and benefits established by the national State, the provinces, the Autonomous City of Buenos Aires, and the municipalities of the Argentine Republic, the authority of application will have the powers to detail, modify and expand the purposes of the Register of Companies MiPyMES; to articulate with the public records; the Central Bank of the Argentine Republic

Such agencies and authorities shall provide to the registry the information and documentation required by the enforcement authority, provided that this does not result in a violation of regulatory restrictions that may be applicable to such authorities. To that end, the implementing authority shall sign agreements with the relevant authorities.

The implementing authority shall also have the authority to establish the conditions and limitations in which the information and documentation included in the Register of MiPyMES Enterprises may be consulted and used by national civil service agencies, financial entities, mutual guarantee companies, guarantee funds, trading bags and securities markets duly authorized by the National Securities Commission, a decentralized agency within the Ministry of Finance and Public Finance. Access to such information by provincial, municipal or the Autonomous City of Buenos Aires may be agreed through the signing of agreements with the enforcement authority, ensuring the protection of confidential information or subject to restriction by the applicable law.

ARTICLE 34. - Registration of consultants MiPyME. Replace article 38 of Law 25.300 with the following:

Article 38: Créase el Registro de Consultores MiPyME en el que deben inscribese los profesionales que desea ofrecer servicios mediante la uso de documentos y programas de la Secretaría de Emprendedores y de la Tin y Mediana Empresa del Ministerio de Production. Registration in such registration shall remain open on a permanent basis for all applicants who meet the minimum professional requirements which, in general, establish the application authority.

The provinces and the Government of the Autonomous City of Buenos Aires will be able to join the registry to include all the providers of technical assistance services of the network.

ARTICLE 35. - Productive Development Agencies. Replace article 13 of Act 24,467 with the following:

Article 13: The Ministry of Production will organize a Network of Productive Development Agencies that will aim to provide assistance to the business sector throughout the national territory and coordinate actions aimed at strengthening the institutional framework with the objective of achieving sustainable development and in line with the characteristics of each region.

In the organization of the Network of Productive Development Agencies, the Ministry of Production will privilege and prioritise the articulation and integration into the network of those agencies dependent on the provincial, municipal and business centres already in the provinces. All institutions that subscribe to the respective conventions should ensure that the network agencies comply with the requirements of the implementing authority in a timely manner in order to ensure a level of homogeneity in the provision of services of all the institutions that integrate the network.

The agencies that make up the network will be able to operate as a window of access to all existing and future instruments and programmes available to the Ministry of Production to assist the business sector, as well as all those of other areas of the national State for the sector that the Ministry agrees to incorporate.

Agencies will promote the articulation of public and private actors that relate to productive development and understand, at the level of diagnosis and formulation of proposals, in all aspects related to regional development.

The Network of Productive Development Agencies organized by the Ministry of Production will seek to promote the coordination, collaboration and institutional cooperation, the public-private partnership and the co-financing of activities between the national State, the provinces, the Autonomous City of Buenos Aires and the municipalities.

ARTICLE 36. - Article 4 of Law 22,317 and its amendments. Replace the second paragraph of Article 4 of Law 22,317 with the following:

For the annual rate administered, for the training carried out by the Micro, Small and Medium-sized Enterprises, whatever the administering agency of such a quota, the amount of the certificates referred to in article 3 of this law shall in no case exceed thirty per cent (30%) of the total amount of salaries and remuneration in general for services rendered, corresponding to the last twelve (12) months paid to the staff employed in the establishments. The administering agency may establish different percentages, within the limit provided for in this article, depending on whether it is Micro, Small or Medium-sized Enterprises and taking into consideration the sector in which they operate.

ARTICLE 37. - Fonapyme. Investments Committee. Replace Article 5 of Law 25.300 with the following:

Article 5: Investment Committee. The eligibility of investments to finance with Fonapyme resources shall be carried out by an investment committee composed of as many members as established in the regulation, who shall be appointed by the implementing authority. The chairmanship of the investment committee shall be the responsibility of the Minister of Production or the representative designated by the latter, and the vice-chairmanship by the Secretary of Entrepreneurs and the Small and Medium Enterprise.

The functions and powers of the investment committee shall be established by the regulation of this law, including, inter alia, setting the investment policy of the Fonapyme, establishing the terms and conditions for the granting of the financing it provides and acting as the highest authority for the approval of the enterprises in each case.

The investment committee should envisage objective mechanisms for the allocation of Fonapyme to ensure an equitable distribution of project financing opportunities in the provinces of the national territory. The selection and approval of projects should be made through public examinations.

The Fonapyme Trust shall provide all administrative and management support services required by the investment committee for the performance of its functions.

ARTICLE 38. - Fogapyme. Modification of the object. Replace article 8 of Act 25.300 with the following:

Article 8: Creation and object. The Micro, Small and Medium-sized Enterprise Guarantee Fund (Fogapyme) is established to grant guarantees in support of those issued by mutual guarantee companies and to provide direct guarantees, in order to improve the conditions of access to credit for Micro, Small and Medium-sized Enterprises and of the associative forms covered by Article 1 of this Law:

(a) Financial entities authorized by the Central Bank of the Argentine Republic;

(b) Non-financial entities that develop financing tools for Micro, Small and Medium Enterprises;

(c) Investor of instruments issued by Micro, Small and Medium-sized Enterprises under the public supply regime in trade bags and/or securities markets duly authorized by the National Securities Commission.

It may also grant guarantees in support of those issued by the provincial or regional funds or by the Autonomous City of Good Aliens constituted by the respective governments, regardless of the legal form they adopt, provided that they meet technical requirements equal to or equal to those of the mutual guarantee companies (SGR).

The granting of guarantees by the Fogapyme will be onerous.

ARTICLE 39. - Fogapyme. Management Committee. Replace Article 11 of Law 25.300 with the following:

Article 11: Management Committee. The administration of the Fogapyme trusteeship and the eligibility of the approved operations shall be the responsibility of an administrative committee composed of as many members as established in the regulations, which shall be appointed by the implementing authority, and whose chairmanship shall be the responsibility of the Minister of Production or the representative designated by the latter and the vice-presidency by the Secretary of Entrepreneurs and the Small and Medium Enterprise.

ARTICLE 40. - Tax Bonus Regime. Distribution of quota. Replace article 33 of Law 25.300 with the following:

Article 33: The implementing authority shall distribute the total annual amount allocated to the present regime, in a fractional manner and in as many acts as it deems necessary and appropriate, awarding the credit quotas to the financial and non-financial entities that implement financing tools for Micro, Small and Medium-sized Enterprises and offering the best conditions to the applicants.

The implementing authority may assign part of the annual quota for distribution to Micro, Small and Medium-sized Enterprises that issue instruments under the public supply regime in trade exchanges and/or securities markets duly authorized by the National Securities Commission.

ARTICLE 41. - Tax Bonus Regime. Vouchers. Replace article 34 of Law 25.300 with the following:

Article 34: Entities may not be awarded new credit quotas until they have agreed to funding for the equivalent of a percentage determined by the enforcement authority of the amounts assigned to them.

The benefits of this Chapter are excluded from credit operations aimed at refinancing arrears or corresponding to credits granted with unified rates, unless such bonus proceeds from programmes terminated by provincial or municipal jurisdictions. Participating entities shall undertake to provide equal treatment for all enterprises, whether or not they have previously been clients of them, and may not establish as a condition for the granting of the rate bonus the hiring of other services outside them.

ARTICLE 42. - Tax Bonus Regime. Replace article 3 of Act 24,467 with the following:

Article 3: Institute a system of bonus interest rates for Micro, Small and Medium-sized Enterprises, to reduce the cost of credit. The amount of such bonus shall be established in the respective regulations.

It will be favoured with a special bonus to new or functioning MiPyMES located in the geographical areas that meet any of the following characteristics:

(a) Regions where unemployment rates are higher than the national average;

(b) The provinces of northern Argentina within the Belgrano Plan;

(c) Regions where gross Geographical Product (GDP) levels are recorded below the national average.

ARTICLE 43. - Mutual guarantee societies. Penalty regime. Replace article 43 of Law 24.467 with the following:

Article 43: The non-compliance by human and legal persons of any nature of the provisions of Title II of this Law and its regulation shall result in the application, jointly or individually, of the following sanctions, without prejudice to the other provisions of this rule, of Law 19.550 (T. 1984) and its amendments, pursuant to Article 32 of this Law and those which may correspond to the application of criminal law:

(a) Dismissing guarantees of the computation of the degree of use required to access the tax relief provided for in article 79 of Law 24.467 and its amendment;

(b) Appreciation;

(c) Appreciation, with an obligation to publish the operative part of the resolution in the Official Gazette of the Argentine Republic and in the portals of the implementing authority, and up to two (2) national circulation journals at the expense of the punctuated subject;

(d) Fines applicable to the Society of Reciprocal Guarantee (SGR) and/or, depending on whether a specific non-compliance is attributable to the members of the social bodies of the same. Fines can be established between a weight of five thousand ($ 5,000) to pesos twenty million ($ 20,000). The national executive branch may modify the minimum and maximum ceilings every two (2) years;

(e) Expulsion of the protective partner or non-compliant participant, as well as the prohibition of incorporation, permanently or temporarily, into the system by another Society of Reciprocal Guarantee (SGR);

(f) Disqualification, temporary or permanent, to serve as directors, administrators, members of the monitoring councils, trustees, liquidators, managers, auditors, partners or shareholders of the entities covered by Title II of Law 24,467 and its amendment;

(g) Transitional disqualification to operate as a Reciprocal Guarantee Society (SGR);

(h) Revocation of authorization to function as such.

The legal consequences contained in this article may be applied in a total or partial manner. For the purposes of the imposition of the sanctions referred to above, the enforcement authority must take special account of the extent of the offence; the benefits generated or the damage caused by the offender; the operating volume and the risk fund of the offender; the individual performance of the members of the administration and control bodies. In the case of legal persons, the directors, administrators, trustees or members of the monitoring council and, where appropriate, managers and members of the qualification council shall be jointly responsible for those who have determined individual responsibility in the commission of the sanctioned conducts.

The enforcement authority shall determine the procedure for the purposes of the application of the sanctions provided for in this article, ensuring the exercise of the right of defence.

Contrary to the resolution providing for the imposition of sanctions, it may appeal to the enforcement authority with a grant appeal to the National Chamber of Appeals in the Commercial. Both resources will have suspensive effects.

ARTICLE 44. - Implementing authority. The Ministry of Production is responsible for the implementation of the National Fund for the Development of Micro, Small and Medium Enterprise (Fonapyme), the Micro, Small and Medium Enterprise Guarantee Fund (Fogapyme), the Tax Bonus Regime, the Reciprocal Guarantee Societies System, and the Network of Productive Development Agencies, provided for in Law 24,467 and 25.300.

PART V

Financing for Micro, Small and Medium Enterprises

CHAPTER I

Amendments to the law of negotiable obligations

ARTICLE 45. - Negotiable Obligations Act. Subjects entitled to contract loans through negotiable obligations. Replace article 1 of Act No. 23.576 with the following:

Article 1: Corporations for actions, limited liability societies, cooperatives and civil associations established in the country, and branches of companies for actions constituted abroad in the terms of article 118 of Act No. 19.550 (t. 1984) and its modifications, may contract borrowing by issuing negotiable obligations, in accordance with the provisions of this Act.

The provisions of this rule are applied, as the national executive branch, the entities of the national State, the provinces and the municipalities governed by laws 13.653 (t. decree 453/55), 19.550 (t. 1984) and their amendments (arts. 308-314), 20,705 and by conventions.

ARTICLE 46. - Negotiable Obligations Act. Guarantees. Replace Article 3 of Law 23.576 with the following:

Article 3: They may be issued with floating, special or common guarantee. The issue whose privilege is not limited to specific real estate shall be deemed to be carried out with floating guarantee. The provisions of articles 327 to 333 of Act 19.550 (t. 1.984) and their amendments shall apply. The guarantees are constituted by the manifestations that the issuer carries out in the resolutions that have been issued and must, where appropriate, be registered in the relevant records.

Registration in such records shall be credited to the counter-reference agency prior to the beginning of the placement period. The mortgage shall be constituted and canceled, by unilateral statement of the issuer when a trustee does not meet in the terms of article 13 of this measure, and does not require acceptance by creditors. Cancellation will only proceed if the average accounting certification regarding the total amortization or rescue of the secured negotiable obligations, or unanimous agreement of the obligators. In the case of negotiable obligations with public supply, the conformity of the National Securities Commission is also required.

They can also be supported or guaranteed by any other means, including Reciprocal Guarantee Societies (SGR) or warranty funds. They may also be guaranteed by financial entities covered by the respective law.

ARTICLE 47. - Negotiable Obligations Act. Title requirements. Replace Article 7 of Law 23.576 with the following:

Article 7: Titles must contain:

(a) The name and address of the station, date and place of incorporation, duration and data of its registration in the Public Register of Commerce or corresponding agencies, as appropriate;

(b) The serial and order number of each title, and the nominal value it represents;

(c) The amount of the loan and currency in which it is issued;

(d) The nature of the guarantee;

(e) Conversion conditions in your case;

(f) The conditions of amortization;

(g) The formula for updating the capital, if any; type and time of payment of interest;

(h) Name and surname or name of the subscriber, if nominative.

They must be signed in accordance with article 212 of Act No. 19,550 (t. 1984) and its amendments or article 26 of Act No. 20,337, dealing with corporations by shares or cooperatives, respectively, and by the legal representative and a member of the administrative body designated for that purpose, whether they are civil associations or branches of companies constituted abroad, or, yes, they are companies of limited liability, by a manager, if there is a manager. In the case of scriptural obligations, the data indicated in subparagraphs (a) and (h) of this article shall be transferred to the opening vouchers and balance sheets.

ARTICLE 48. - Negotiable Obligations Act. Authorization for emission. Replace Article 9 of Law 23.576 with the following:

Article 9: In societies for actions, limited liability companies and cooperatives, the issue of negotiable obligations does not require authorization of the statutes and may be decided by ordinary assembly.

In the case of obligations convertible into actions, the issue is the responsibility of the extraordinary assembly, except in the societies authorized to offer the public of their actions, which can be decided in all cases by ordinary assembly.

In civil associations, the issue requires express authorization of the statutes and must be resolved by the assembly.

They may be delegated to the governing body:

(a) If it is simple obligations: the determination of all or some of its emission conditions within the authorized amount, including time, price, form and payment conditions;

(b) If it is convertible obligations: the fixing of the emission period; placement price; form and payment conditions; interest rate and conversion value, indicating the guidelines and limits to the effect.

The delegated powers must be exercised within the two (2) years of the assembly. This term has expired, the assembly resolution will have no effect on the amount not issued.

CHAPTER II

Amendments to the Insurance Entities Act and its control

ARTICLE 49. - Insurance Entities Act. Replace article 35 (c) of Act No. 20.091 and its amendment with the following:

(c) Negotiable obligations that have authorized public tenders issued by corporations for actions, limited liability companies, cooperatives or civil associations and in musttures, in both cases with special or first-degree floating warranty on goods located in the country or with guarantee of mutual guarantee societies (SGR) or guarantee funds.

ARTICLE 50. — Instruct the National Insurance Superintendence, a decentralized agency under the Ministry of Finance and Public Finance, to establish mandatory minimums in labour capital financing instruments for Micro, Small and Medium-sized enterprises (tram 1), such as deferred payment cheques supported by mutual guarantee companies created by law 24,467 authorized for their public assessment, to pay

CHAPTER III

Amendments to the Decree Law of Exchange and I will pay

ARTICLE 51. - Letra de change and I'll pay. Currency of payment. Replace article 44 of Decree-Law 5,965 of 19 July 1963 with the following:

Article 44: If the exchange letter is payable in currency that has no legal course in the place of payment, the amount may be paid in national currency at the change of the day of expiry. If the debtor is in arrears, the carrier may, at his or her choice, require that the amount be paid to the change of the day of expiry or the day of payment.

The value of the foreign currency is determined by the uses of the place of payment. However, the payer may provide that the amount to be paid is calculated according to the course of the change indicated in the letter.

The above rules do not apply in the event that the payer has provided that the payment must be made in a given currency (the currency cash payment clause).

If the amount had been indicated in a currency that has equal denomination but different value in the country where the letter was delivered and in the amount of payment, the indication is presumed to refer to the currency of the place of payment.

The above rules do not apply when the paye are negotiated in markets registered with the National Securities Commission, in which case the applicable exchange rate is not indicated, the price of the type of exchange sold by the Banco de la Nación Argentina, autarchical entity within the Ministry of Finance, will apply at the end of the day before the expiration of each quota or the expiry of the payment.

(Article replaced by art. 195 of the Act No. 27.440 B.O. 11/5/2018)

ARTICLE 52. - I'll pay. Requirements. Replace Article 101 of Decree Law 5.965/63 with the following:

Article 101: The voucher or payment must contain:

(a) The clause "to order" or the denomination of the title inserted in the text of the same and expressed in the language used for drafting;

(b) The pure and simple promise to pay a given sum;

(c) The payment period;

(d) The indication of the place of payment;

(e) The name of the person to whom the payment is to be made, except for a payment issued or endorsed for negotiation in markets registered with the National Securities Commission, in which case this requirement shall not be required;

(f) Indication of the place and date on which the voucher or I shall pay has been signed;

(g) The signature of which he has created the title (subscriber).

For the purposes of the negotiation of foreign exchange in the markets registered with the National Securities Commission, the instrument may provide for a system of amortization for the payment of capital with successive dues. The lack of payment of one (1) or more shares of capital empowers the holder/agreeder to give up all deadlines and to demand payment of the total amount owed of the title. Payments issued under these conditions shall not be liable to the nullity provided for in the last paragraph of article 35 of this decree.

(Article replaced by Article 196 of the Act No. 27.440 B.O. 11/5/2018)

ARTICLE 53. - I'll pay. Supplementary implementation standards. Replace article 103 of Decree-Law 5.965/63 with the following:

Article 103: The provisions of the letter of change relating to the endorsement (articles 12 to 22); the expiry (articles 35 to 39); the payment (articles 40 to 45); the remedies for lack of acceptance and for lack of payment and the protest (articles 46 to 54 and 56 to 73); the payment for intervention (articles 74 and 78 to 82); They are equally applicable to the voucher or I shall pay the provisions for the letter of exchange payable in the domicile of a third party or elsewhere other than the domicile of the tour (Articles 4 and 29); those relating to the clause of interest (Article 5); to the differences in the indication of the amount to be paid (Article 6); for the purposes of the signatures set forth in the terms of Article 7; to the signatures of persons who invoke the act They are equally applicable to the voucher or I will pay the aval provisions (articles 32 to 34), if the aval, in the case provided for in article 33, last paragraph, does not indicate which of the obligation is granted, is considered to have been to guarantee the subscriber of the title. They shall also apply to the voucher or I shall pay the provisions concerning the cancellation, the letter of exchange (arts. 89-95).

The provisions referred to in the preceding paragraph are applicable when I shall be negotiated in the markets registered with the National Securities Commission unless they are incompatible with the nature of this title and the particularities of its negotiation, as well as the following conditions:

(a) They must incorporate the "without protest" clause, which would have an effect on non-compliance with any assessment;

(b) They must incorporate the clause "for negotiation in markets registered in the National Securities Commission";

(c) Payments of assessed contributions shall be recorded in the account summary issued by the agent exercising the function of custody, registration and/or payment, in accordance with the regulations issued by the National Securities Commission, against the accounts administered in the framework of its functions;

(d) The National Securities Commission as the implementing authority shall determine the obligations of agents exercising the function of custody, registration and/or payment in relation to the validation of the information inserted in the I shall pay, as well as the verification of compliance with the formal aspects of the I shall pay. In no case shall the agent be bound to his payment, nor shall it generate an obligation to change, nor shall he be liable for his formal defects, nor for the legitimization of the signatories or the authenticity of the signatures in the pagoés;

(e) The payment issued in the terms of the present may be negotiated in the markets registered with the National Securities Commission in accordance with the rules issued by the implementing authority;

(f) Payments enjoy public tenders under the terms of law 26,831 and their modifications and may be negotiated in markets registered with the National Securities Commission provided that they meet the requirements set out in the rules issued by the Commission as the implementing authority, and the tax exemptions corresponding to negotiable values with public tender shall apply to it;

(g) The custody and/or registration of the payment shall not transfer the property to the agent or its use, therefore, it shall only retain and guard the same and carry out the accounting operations and registrations specified in Act No. 20,643 and its modifications or the resolution of the National Securities Commission as the enforcement authority;

(h) The address of the custodial agent shall be the place of payment of the payment.

(Article replaced by Article 197 of the Act No. 27.440 B.O. 11/5/2018)

ARTICLE 54. - Implementing authority. The National Securities Commission is the authority for the application of the tax-paying regime in markets registered with the said agency provided for in Decree-Law 5.965 of 19 July 1963, ratified by law 16.478 and amended by law 27.264 and law 26.831 and its amendments, bearing in mind the dictation of the corresponding regulation and the supervision of the negotiation of the said regime.

(Article replaced by Article 198 of the Act No. 27.440 B.O. 11/5/2018)

ARTICLE 55. - I'll pay for it. Seal tax. Invite provinces that do not yet have the exemption from seal tax on negotiable securities with public offer to grant such exemptions within their jurisdictions.

(Article replaced by art. 199 of the Act No. 27.440 B.O. 11/5/2018)

PART VI

Other provisions

ARTICLE 56. — Trust the Monitoring and Competitiveness Council for Micro, Small and Medium-sized Enterprises (MiPyMES) with public-private participation in the Secretariat of Entrepreneurs and the Small and Medium-sized Company of the Ministry of Production. The following functions:

(a) Monitoring the evolution of credit allocation to SMEs in accordance with the provisions set out in this Act;

(b) Monitoring foreign trade and its impact on production and employment MiPyMES;

(c) Analysis and follow-up of the role, position and evolution of MMES in value chains.

ARTICLE 57. — Instruct the Ministry of Science, Technology and Productive Innovation to carry out all actions aimed at minimizing costs, in order to facilitate access for Micro, Small and Medium Enterprises to technological innovation plans and programs aimed at solving productivity asymmetries.

ARTICLE 58. - Contact the national executive branch.

IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE TRECE DAYS OF THE JULY OF THE YEAR DOS MIL DIECISEIS.

— REGISTRATE BAJO N° 27264 —

MARTA G. MICHETTI. - GIMÉNEZ PATRICIA. - Eugene Inchausti. — Juan P. Tunessi.