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LAW OF FINANCING OF POLITICAL PARTIES Law 25.600 Heritage of political parties. Permanent Fund. Private financing and electoral campaigns. Cost limitation. Funding control. Complementary provisions. General provisions.

Sanctioned: May 23, 2002.

Partially promulgated: June 11, 2002.

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

Law on the Financing of Political Parties

Part I

Chapter I

The heritage of political parties

ARTICLE 1 The heritage of the political party shall be integrated with the assets and resources authorized by this law and the respective organic charter. ARTICLE 2 The funds of the political party, except those intended to finance the electoral campaign, shall be deposited in a single district account to be opened in the Bank of the Argentine Nation or official banks in the provinces that have them, on behalf of the party and the joint or indistinct order of up to four (4) members of the party, of which two (2) shall be the president and the treasurer, or their equivalents, one of which must necessarily be subscribed.

National party bodies should open a single account in the district of its foundation in the Bank of the Argentine Nation, in similar terms to those of the preceding paragraph.

The accounts must be registered in the Federal Court with electoral competence of each district concerned, the General Audit of the Nation and the National Electoral Chamber.

ARTICLE 3 They shall be punished with the loss of the right to receive contributions, subsidies and any annual public funding resource, for a period of one (1) to four (4) years, political parties receiving or depositing funds in accounts other than those provided for in the preceding article. ARTICLE 4 The president and treasurer of the party who authorize or consent to the use of accounts other than those laid down in this law for the financing of the activity of the political party will be liable to the disqualification of six (6) months to ten (10) years, for the exercise of their rights to choose and be elected in the elections to national public office, and in the elections of political party authorities and for the exercise of public office and supporters. ARTICLE 5° Registerable assets that are acquired with party funds or that come from contributions or should be registered on behalf of the party in the respective registry. ARTICLE 6 The assets and activities of recognized parties shall be exempt from any national tax, rate or contribution. This waiver will reach the locally owned or transferred property in usufruct or asdato to the parties provided that they are exclusively and habitually intended for the specific activities of the party and that the contributions are made by the party.

The party ' s income assets are included in the exemption on the condition that the party is invested exclusively in party activity and does not directly or indirectly increase the property of any person and the role for the exclusive use of the party.

ARTICLE 7 As the electoral campaign begins, political parties and alliances that submit candidatures to national elective public officials must designate an economic-financial leader and a political campaign manager by district who will be jointly responsible with the president and the Treasurer of the Party for the enforcement of applicable legal provisions. The designations should be communicated to the federal judge with corresponding electoral competence, to the National Electoral Chamber and to the General Audit of the Nation. ARTICLE 8 Funds to finance the electoral campaign shall be deposited in a single account per district to be opened at the Bank of the Argentine Nation or official banks in the provinces to which they are held, on behalf of the party or alliance and the joint order of the financial and political leader.

The national organs of the party should open a single account for the electoral campaign in the district of its foundation in the Banco de la Nación Argentina, on behalf of the party or alliance and the joint order of the economic-financial responsible and the political campaign manager.

The accounts must be registered in the Federal Court with electoral competence of each district concerned, in the General Audit of the Nation and in the National Electoral Chamber and must be closed at thirty (30) days after the election is completed.

ARTICLE 9 Any expenditure incurred on the occasion of the electoral campaign must be documented, without prejudice to the issuance of regular fiscal instruments, through a "Operation for Electoral Campaign" which should include the following data:

(a) Tax identification of the party or alliance and the co-contractor party;

(b) the amount of the operation;

(c) Number of invoices;

(d) cheque number for payment.

The "Operation Constances for Electoral Campaign" will be numbered correlatively for each campaign and must register in the accounting books.

ARTICLE 10. They shall be sanctioned with the loss of the right to receive contributions, subsidies and any recourse for public funding from election campaigns for one (1) or two (2) elections, political parties that receive or deposit funds in accounts other than those provided for in Article 8. ARTICLE 11. The president and treasurer of the party and those responsible for the electoral campaign that authorize or consent to the use of accounts other than those established in this law for the financing of the electoral campaign will be liable to the disqualification of six (6) months to ten (10) years, for the exercise of their rights to choose and be elected in the elections to national public office, and in the elections of political party authorities and for the exercise of public office and supporters.

Chapter II

Permanent Fund

ARTICLE 12. The national State shall ensure the normal functioning of recognized political parties through contributions to the following activities:

(a) Institutional development and political training and training;

(b) General election campaigns.

Institutional development means everything related to the updating, systematization and dissemination, both nationally and internationally, of the political, economic and social doctrine and principles contained in its organic letter and other official documents. It also understands its political and administrative functioning.

ARTICLE 13. The Permanent Fund shall be administered by the Ministry of the Interior and shall consist of:

(a) the annual contribution of the National Budget Act;

(b) Money from fines collected for the application of this law;

(c) The proceeds of liquidation of assets belonging to extinct political parties;

(d) Legacies and donations to that destination to the national State;

(e) the returns of parties, confederations and alliances;

(f) Private contributions to this fund;

(g) the remaining funds of those allocated by this law or by the National Budget Act, to the Ministry of the Interior, after the erogations for which they were intended.

ARTICLE 14. The Ministry of the Interior shall receive twenty per cent (20%) of the budget allocated to the Permanent Fund in the General Budget Law of the Nation, prior to any other deduction, for the purpose of:

(a) To grant the franchises authorized by this Act;

(b) To allocate the contribution for the institutional development of those recognized political parties after the annual distribution of the Permanent Fund;

(c) To establish the system of advances against avals or counter-causts in cases of alliances or parties that do not register previous electoral reference.

The remaining funds will be integrated into the Permanent Fund.

ARTICLE 15. In the first month of each year, the Ministry of the Interior will inform the parties of the amount of resources that make up the Permanent Partiary Fund as at 31 December of the previous year. That amount, plus the funds allocated by the General Budget of the Nation to the Permanent Partition Fund, deducted the percentage indicated in the previous article, will be the resources to be distributed as an annual contribution for institutional development. ARTICLE 16. The resources available for the annual contribution for institutional development will be distributed as follows:

(a) 20 per cent (2 per cent), in an equal manner between all recognized parties.

(b) Eighty percent (80%), in proportion to the number of votes the party had obtained in the last election of national deputies. Only parties that had participated in the last election will participate in this distribution.

ARTICLE 17. In the case of parties that had joined the last election, the amount corresponding to the alliance, in accordance with the provisions of subparagraph (b) of the preceding article, shall be distributed among the member parties in the manner that determines the agreement signed by the member parties at the time of requesting recognition of the alliance. ARTICLE 18. In the case of national parties, once the amount corresponding to each party has been determined, 80 per cent (80%) will be distributed directly to the district supporters and 20 per cent (20%) remaining to national agencies.

In the case of district parties that have not been recognized as national parties, the amount of the contribution will be given to district supporters.

ARTICLE 19. The parties should allocate at least 20% (20%) of what they receive as an annual contribution to institutional development to the financing of training activities for the public service, leadership training and research.

The violation of the provisions of the preceding paragraph shall entail the loss of the right of the party to receive this contribution by the end of one (1) year.

ARTICLE 20. The payment of the contribution for the institutional development will only be made if the party has submitted the accounting documentation for the last period, in time and form, before the federal judge with corresponding electoral competence.

Chapter III

Financing for electoral campaigns

ARTICLE 21. The National General Budget Act for the year in which national elections should take place will determine the amount to be distributed as an extraordinary contribution for electoral campaigns. For the years in which presidential elections are to be held, the Budget Law shall provide for a specific item for the financing of the second electoral round in accordance with the provisions of this law.

The Ministry of the Interior will receive ten percent (10%) of the funds allocated in the National Budget Act to the extraordinary contribution for electoral campaigns, to grant the compensations to the board authorities provided for in the National Electoral Code and to grant the contribution to collaborate with the printing costs of the ballots. The remaining funds will be integrated into the Permanent Fund.

ARTICLE 22. Funds for the contribution to the electoral campaign, following the deduction to the Ministry of the Interior provided for in the previous article, will be distributed among parties and alliances that have formalized lists of candidates for the election of national elective public office, as follows:

(a) thirty per cent (30%) of the amount allocated by the Budget, in an equal manner;

(b) 70 per cent (70%) of the amount allocated by the Budget, in proportion to the number of votes that the party or alliance had obtained in the last election of national deputies.

ARTICLE 23. For the alleged parties that do not register previous electoral reference, a special system of advances of funds will be established through a system of political guarantees or counter-cautious, with the obligation to refund the excess amounts in the event that the rate of votes obtained does not cover the advance amount. ARTICLE 24. In the case of parties that had attended the last election of national deputies, integrating an alliance that had been dissolved, the sum corresponding to the alliance, depending on the number of votes, will be distributed among the member parties in the manner that determines the agreement signed by the member parties at the time of requesting the recognition of the alliance. ARTICLE 25. In the case of alliances that have not participated in the last election of national deputies, the sum of votes obtained by the constituent parties will be taken into account, or their contribution as members of a dissolved alliance. ARTICLE 26. In the case of national parties, once the amount corresponding to each party or alliance is determined, eighty percent (80%) will be distributed to district agencies and the remaining twenty percent (20%) to national agencies.

In the case of district parties that have not been recognized as national parties, the amount of the contribution will be given to district supporters.

ARTICLE 27. If the party or alliance withdraws its candidates and does not present itself to the election, it shall, within sixty (60) days of the election the amount received as a contribution for the campaign. The president and the party’s Treasurer, as well as the political responsible and the financial-financial leader of the campaign, will be responsible for the return of such funds. ARTICLE 28. They will be sanctioned with the loss of the right to receive contributions, subsidies and any annual public funding resource, for a period of one (1) to four (4) years and funds for public funding of electoral campaigns for one (1) to two (2) elections, political parties that contravene the provisions of the previous article. ARTICLE 29. The public contribution to the electoral campaign must be made effective within ten (10) working days following the deadline for the formalization of candidates. ARTICLE 30. The parties or alliances that participate in the second round in the presidential election will receive as a contribution for the campaign an amount equal to thirty percent (30%) of what would have been received by that of them that most funds would have received as a public contribution for the campaign for the first round. ARTICLE 31. The State will grant parties or alliances to formalize candidatures, spaces in the media, for the transmission of their campaign messages. The Ministry of the Interior will determine at the beginning of the electoral campaign the total amount and duration of the spaces to be distributed. The amount and duration of the spaces will be distributed equally among the parties and alliances that have formalized nominations. To this end, the schedules of transmissions to be made shall be considered and weighted. ARTICLE 32. The State will grant parties or alliances to formalize candidatures, a contribution to collaborate with the printing costs of the ballots. The Ministry of the Interior will determine at the beginning of the electoral campaign the total resources to be distributed. The rules for the distribution of the contribution for the electoral campaign will apply.

Chapter IV

Private financing

ARTICLE 33. Private contributions may be made to the Permanent Fund, or directly to political parties.

Contributions or donations made by natural or legal persons to the Permanent Partition Fund shall be deductible for the income tax to the limit of 5 per cent (5%) of the net profit of the exercise.

ARTICLE 34. Political parties may not accept or receive, directly or indirectly:

(a) anonymous contributions or donations. The non-disclosure of the identity of the taxpayer or donor may not be imposed on contributions or donations;

(b) contributions or donations from centralized or decentralized entities, national, provincial, inter-State, binational or multilateral, municipal or the City of Buenos Aires;

(c) Contributions or donations from concessionary companies of services or public works of the Nation, provinces, municipalities or the City of Buenos Aires;

(d) Contributions or donations of individuals or legal entities exploiting gambling;

(e) contributions or donations from foreign Governments or public entities;

(f) Contributions or donations of foreign natural or legal persons who do not have residence or domicile in the country;

(g) contributions or donations of persons who have been obliged to make the contribution by their hierarchical or employers.

(h) Contributions or donations of trade union, employers and professionals.

The restrictions provided for in this article also include private contributions to the Permanent Fund.

ARTICLE 35. Political parties may not receive contributions or donations from:

(a) a legal person, above the amount of one per cent (1%) of the total expenditure allowed;

(b) a natural person, above the amount equivalent to zero, eats five per cent (0.5 per cent) of the total expenses allowed.

The above-mentioned percentages shall be computed on the cost limit set out in article 40 of this Act.

ARTICLE 36. The party and its candidates as a whole, on the occasion of the electoral campaign, will not be able to receive a total of private resources that exceeds the amount equivalent of the difference between the maximum amount of campaign expenses set by this law and the amount of extraordinary contribution for electoral campaign corresponding to the party or alliance. ARTICLE 37. The prohibitions and limits established for political parties in the preceding articles also oblige candidates for elected public office. ARTICLE 38. They will be sanctioned with the loss of the right to receive contributions, subsidies and any annual public funding resource, for a period of one (1) to four (4) years and funds for public funding of election campaigns for one (1) to two (2) elections, political parties receiving contributions or donations in violation of the provisions of this chapter. ARTICLE 39. It shall be punished with a fine of the same amount as the contribution and even the debt of that amount, the natural or legal person who makes, accepts or receives contributions or donations to political parties in violation of the prohibitions established by this law.

The natural persons, as well as the owners, directors and managers or representatives of legal persons who engage in the conduct indicated in this article, shall be liable to disqualification from six (6) months to ten (10) years, for the exercise of their rights to choose and be elected in elections to national public office, and for the election of political party authorities and for the exercise of public office and supporters.

Chapter V

Limits to party costs

ARTICLE 40. In the elections to national legislative posts, the costs for the electoral campaign of a party, its candidates and any other person in their favour cannot be exceeded in whole, the amount equivalent to one peso ($ 1) for the elector entitled to vote in the election.

In the election of president and vice president of the Nation, the expenses for the electoral campaign that a party, its candidates and any other person in their favor, will not be able to overcome in whole, the sum equivalent of one peso ($ 1) for the elector entitled to vote in the election.

For the purpose of applying the provisions of this article, no district shall be deemed to have less than five hundred thousand (500,000) electors.

ARTICLE 41. When a party does not submit its own candidates or lists and accede to the candidature submitted by another party or alliance, the costs incurred will be computed within the limit set out in the previous article. ARTICLE 42. Expenses for the electoral campaign for the second round in the presidential election made by the parties, the candidates and any other person may not jointly exceed the sum equivalent to thirty cents ($0.30) for the eligible voters in the election. For the purposes of this article, the last paragraph of article 40. ARTICLE 43. They will be sanctioned with the loss of the right to receive contributions, subsidies and any annual public funding resource, for a period of one (1) to four (4) years and funds for public funding of election campaigns for one (1) to two (2) elections, political parties that did not respect the spending limits set out in this chapter. ARTICLE 44. For the purpose of calculating the maximum amount of expenditures and contributions provided for in this Act, goods and services shall be computed in accordance with the value and practices of the market.

Ten (10) days before the start of the electoral campaign, the media will have to submit a detailed report to the National Audit on the rates that will apply to publicity spaces for the electoral campaign. If such fees were modified in the course of the election campaign, the changes should be communicated immediately.

Part II

Control of Party Financing

Political

ARTICLE 45. The political parties, through the body that determines the organic charter, shall bear the detailed accounting of any income and proceeding of funds, indicating the origin and destination of the funds and the date of the operation and the name and address of the persons involved. The supporting documentation should be retained for 10 years. ARTICLE 46. The party shall appoint a titular treasurer and an alternate, whose identity and profession data shall be communicated to the federal judge with corresponding electoral competence, the National Electoral Chamber and the General Audit of the Nation. ARTICLE 47. These are obligations of the Treasurer:

(a) To keep a detailed accounting record that allows at all times to know the economic-financial situation of the party;

(b) To extend the information required by this Act to the monitoring bodies;

(c) To make all expenditures under the corresponding single account of the party.

ARTICLE 48. The external control of the economic-financial activity of the political parties will be carried out by the General Audit of the Nation, without prejudice to the intervention of the Federal Justice with electoral competence.

The General Audit of the Nation and the Federal Justice with electoral competence may apply to any person for documentation relating to expenses incurred by political parties and candidates for national elective public office.

ARTICLE 49. The General Audit of the Nation must control, audit and publicize all the public and private financing of political parties.

The General Audit of the Nation may establish the requirements and formalities of the balance sheets and other accounting documents to be submitted by the parties.

The General Audit of the Nation shall report to the Federal Justice with electoral competence any violation of the applicable legal rules, forwarding the corresponding documentation.

ARTICLE 50. Within sixty (60) days of the end of each exercise, political parties shall submit to the Federal Justice with electoral competence of the corresponding district, the annual state of their heritage and the income and income account of the exercise, certified by the president and treasurer of the party and by public accountant enrolled in the district and shall make available to the Federal Justice with electoral competence and the National Audit the corresponding supporting documentation.

They shall also submit a complete list of individuals and legal entities who have made economic contributions in the period, detailing personal identification data, tax identification and amount and date of contribution. This information shall be public and may be freely consulted by any citizen.

ARTICLE 51. The federal judge with electoral competence will transfer to the General Audit of the Nation of the party ' s submission so that, within thirty (30) working days of the court, he will forward a report on the evaluation of party finances. For the same time period, the documentation submitted will be available to the relevant secretariat for the public and the public.

During that period and up to five (5) working days after its expiry, comments and claims on the veracity and integrity of the information, on compliance with applicable rules or on the violation of the prohibitions set out in the relevant rules may be submitted.

ARTICLE 52. Upon expiration of such deadlines, the federal judge with electoral competence shall transfer to the Public Prosecutor ' s Office the report of the General Audit of the Nation and the observations made so that, within the period of fifteen (15) judicial working days, he may issue a ruling. ARTICLE 53. If observations or claims are made or arising from the report of the General Audit of the Nation or the opinion of the Public Prosecutor ' s Office, the judge shall decide on the matter and, if appropriate, apply the corresponding penalties.

If no observations or complaints were made, and did not arise from the report of the General Audit of the Nation or the opinion of the Public Prosecutor ' s Office, the judge shall order, prior to the filing of the case file, the publication of the annual state of assets and the income and income account of the exercise, for one (1) day in the Official Gazette of the Nation and in a national circulation journal.

ARTICLE 54. . Ten (10) days prior to the commission, the president and treasurer of the party and the economic-financial and political leaders of the campaign will have to present, together, to the federal court with corresponding district electoral competence, a detailed report of the public and private contributions received, with indication of origin and amount, as well as the expenses incurred on the occasion of the electoral campaign, with indication of the expected income and discharges that are the same. ARTICLE 55. In the same period of the previous article, the National Audit will bring to the federal judge with corresponding electoral competence, a detailed report by party and candidate, on compliance with the rules of the National Electoral Code related to the hiring of advertising spaces on television. ARTICLE 56. Under article 54, the Ministry of the Interior shall inform the federal judge with corresponding electoral competence, the amount of public contributions, subsidies and franchises to the electoral campaign, discriminated against by category, amount and party and with indication of the amounts already handed over and the unpaid. In the latter case, the estimated date of effectiveness and the causes of delay should be indicated. ARTICLE 57. The federal judge with corresponding electoral competence shall order the publication of the reports mentioned in the previous articles, in the week prior to the date set for the commission, in a national circulation journal. Such reports may be consulted at the seat of the court without limitation. ARTICLE 58. Sixty (60) days after the election has ended, the president and treasurer of the party and the economic-financial and political leaders of the campaign must jointly submit to the Federal Justice with electoral competence of the corresponding district, a detailed final report of the public and private contributions received, with indication of origin and amount, as well as the expenses incurred on the occasion of the electoral campaign. The opening and closing date of the open bank account for the campaign should also be indicated. They should also make available the corresponding supporting documentation. ARTICLE 59. The federal judge with electoral competence will transfer to the General Audit of the Nation of the party ' s submission that, within forty-five (45) judicial working days, he submits a report on evaluation of party finance. For the same time period, the documentation submitted will be available to the relevant secretariat for the public and the public.

During that period and up to five (5) working days after its expiry, comments and claims on the veracity and integrity of the information, on compliance with applicable rules or on the violation of the prohibitions set out in the relevant rules may be submitted.

ARTICLE 60. Upon expiration of such deadlines, the federal judge with electoral competence shall transfer to the Public Prosecutor ' s Office the report of the General Audit of the Nation and the observations made so that, within the period of fifteen (15) judicial working days, he may issue a ruling. ARTICLE 61. If observations or claims are made or arising from the report of the General Audit of the Nation or the opinion of the Public Prosecutor ' s Office, the judge shall decide on the matter and, if appropriate, apply the corresponding penalties.

If no observations or complaints were made, and did not arise from the report of the General Audit of the Nation or the opinion of the Public Prosecutor ' s Office, the judge shall order, prior to the file, the publication of the report for one (1) day in the Official Gazette of the Nation and in a national circulation journal.

ARTICLE 62. From the same time frames as set out in this title, political parties, campaign leaders, the Ministry of the Interior and the General Audit of the Nation should facilitate the Internet consultation of all data and reports that, according to this law, must be submitted.

Obliged subjects must report through the mass media the addresses in which the information may be found.

ARTICLE 63. Any citizen may request a copy of the reports submitted to the federal courts with electoral competence and the General Audit of the Nation, as well as supporting documentation and audit reports. The request shall not require the expression of cause and the cost of copies shall be borne by the applicant. ARTICLE 64. Failure on the part of political parties to comply with the obligations arising from Title II of this Law will automatically bring the suspension of payment of any public contribution. To this end, the relevant deadlines of the General Audit of the Nation and the federal judge with corresponding electoral competence shall notify the Ministry of the Interior of the breach.

PART III

Supplementary provisions

ARTICLE 65. Amend the first sentence of the first paragraph of article 81 (c) of the Law on Taxation (t. by decree 649/97) and its amendments, which shall be drafted as follows:

"Article 81...

(c) Donations to national, provincial and municipal fiscos, the Permanent Fund and the institutions covered by article 20 (e), made under the conditions established by the regulation and to the limit of the CINCO per SCIENTO (5%) of the net profit of the exercise. "

ARTICLE 66. Incorporate as the second paragraph of article 117 of Law 24.156 and its amendments the following text:

"Article 117: ...

The General Audit of the Nation is responsible for the control of the financing of political parties and electoral campaigns in the terms and scopes determined by the respective law. "

ARTICLE 67. s Incorporate as article 118 (k) of Law 24.156 and its amendments, the following text:

"Article 118...

(k) To audit and issue views on the annual accounting states and the campaign accounts of political parties and to produce the relevant reports in the terms and scopes determined by the respective law. "

Part IV

General provisions

ARTICLE 68. The provisions of this law relating to political parties shall also apply to confederations and alliances, except for express provision to the contrary. ARTICLE 69. For the purposes of this law, the confederations of parties will be considered a party. ARTICLE 70. Political parties shall adapt their organic letter to the provisions of this law, within 90 days of the entry into force of the present law. ARTICLE 71. Refer to the rules that constitute Title V of Law 23.298, Decree No. 2089/92, Decree No. 1682/93 and Decree No. 1683/93 and their respective amendments. ARTICLE 72. The provisions contained in this law shall enter into force from the hundred and twenty (120) days of the publication of the same. ARTICLE 73. Contact the Executive.

IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE VEINTS DAYS OF THE MONTH OF THE YEAR DOS MIL DOS.

# 25,600 EL #

EDUARDO O. CHANGE. . JUAN C. MAQUEDA. . Eduardo D. Rollano. . Juan C. Oyarzún.

ERRATA FEE S

Act No. 25.600

In the edition of June 12, 2002, where the Law was published, the following errors of printing were slipped:

Article 8, paragraph 2:

DONDE DICE: ...and the joint order of the economic responsible and the political campaign manager. I should say: ...and the joint order of the economic-financial and political campaign manager.

Article 14, paragraph 1,

DONDE DICE: ..., prior to all other deduction for the purpose of: I should say: ..., prior to all other deduction, for the purpose of:

Article 16:

DONDE DICE: The resources available for the annual contribution... I should say: The resources available for the annual contribution...

Article 34:

DONDE DICE: (e) Contributions or donations of foreign natural or legal persons; I should say: (e) contributions or donations from foreign Governments or public entities;