Federal Tax Sharing Agreements - Bases - Full Text Of The Rule

Original Language Title: ACUERDOS COPARTICIPACION FEDERAL DE IMPUESTOS - BASES - Texto completo de la norma

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ACUERDOS Ley 25.570 Ratifícas el "Agreement Nación-Provincias sobre Relaciones Financiero y Bases de un Régimen de Coparticipación Federal de Taxes" celebra entre el Estado Nacional, los Estados Provinciales y la Ciudad Autónoma de Buenos Aires, el 27 de febrero de 2002.

Sanctioned: April 10, 2002.

Enacted: May 3, 2002.

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

ARTICLE 1 Ratify the "NATIONAL ACCOUNT" PROVINCIES ON FINANCIAL AND BASES RELATING TO A REGIME OF FEDERAL POPULATION OF IMPESTS, held between the NATIONAL STATE, the PROVINCIAL STATES and the AUTONOMA CIUDAD OF BUENOS AIRES, in the City of Buenos Aires on 27 February 2002, which consists of TRECE (13) articles, whose photocopy authenticated as part of the present law ARTICLE 2 All previously established guarantees on the levels to be transferred by the NATIONAL GOVERNMENT corresponding to the regimes for the distribution of co-participable national resources covered by articles 1, 2 and 3 of the "Fundamental POPATION-PROVINCIPLES ON FINANCIAL RELATION AND BASES OF A REGIME OF FEDERAL POPULATION OF IMPSUES".

Article 3 In the terms of article 75, paragraph 3, of the National Constitution, the sixth and ninth articles of the "Federal COMPROMISE BY THE CHURCH AND FISCAL DISCPLINE" ratified by Act No. 25,400, article 4 of the Act and articles 2 and 3 of Act No. 25,082. ARTICLE 4 Article 3 of the "SEGUNDA ADDENDA DEL COMPROMISO FEDERAL BY THE FISCAL CROWD AND DISCPLINE" ratified by Article 2 of Decree No. 1584 of December 5, 2001, shall not apply to the provisions of Articles 1, 2 and 3 of the "Octment of the Convention on the Financing and BUSINESS OF A REGIONAL FEDERATION". ARTICLE 5o Replace, under article 75, paragraph 3, of the National Constitution, article 3 of Act No. 25.413, which shall read as follows:

"Article 3. The NATIONAL EXECUTIVE POWER (70%) of this tax shall enter the National Treasury and shall be administered by the NATIONAL EXECUTIVE POWER for the care of the expenses incurred by the public emergency declared in Article 1 of Law No. 25.561"

ARTICLE 6 Act No. 25.552.

ARTICLE 7 The provisions of this Act shall be applicable as of 1 March 2002.

ARTICLE 8 Contact the national executive branch.

IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE TWENTY DAYS OF THE APRIL YEAR 2002.

_

EDUARDO O. CHANGE. . MARCELO E. LOPEZ ARIAS. . Eduardo D. Rollano. . Juan C. Oyarzún.

NATIONAL ADOPTION AGREEMENT

FINANCIAL AND BASES OF A

REGIME

FEDERAL POPULATION

OFFICERS

PROPOSITIONS

1. To fulfil the constitutional mandate to shape a tax-sharing regime that would allow for the distribution of tax revenues appropriate to the special circumstances of the Republic and to initiate, on a stable basis, the final partnership regime.

2. Attend the unprecedented economic-social circumstances that occur in our country and which impose clarity on the fiscal relationship between the Nation and the Provinces, within the framework set out by article 75, paragraph 2, paragraph 3, of the National Constitution, simplifying the distribution mechanisms (complicated today to the end by successive exceptions to the single regime established by Law No. 23.548), and granting greater predictability and sustenance to the National Government.

3. Refining the heavy burden on the Provincial States from the financial debts assumed for many years with interest rates incompatible with economic stability and fiscal balance, which prevents them from responding efficiently, by distraction of resources and efforts, to the basic functions assigned to them by the constitutional text. To that end, the rescheduling of the provincial public debt, under the guidelines to which the national public debt is subject, will mean greater availability of shared resources in respect of the current situation, by adapting the emerging services according to the real possibilities of payment.

Therefore,

THE CHAIRMAN OF THE ARGENTINA NATION, THE GOVERNMENTS OF THE PROVINCIES OF GOOD AIRES, CATAMARCA, CORDOBA, CORRIENTS, CHACO, CHUBUT, ENTRE RIOS, FORMOSA, JUJUY, LA PAMPA, MENDOZA, MISSIONS,

ACUERDAN:

OF THE FEDERAL POPULATION REGIME

Article 1: The current shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders shall incorporate thirty per cent (30%) of the shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' credits ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' shareholders ' credits ' credits ' credits ' shareholders ' credits &

Article 2: Tax resources allocated to special schemes of participation shall be distributed in accordance with the rules governing the date and shall constitute free availability income for participating jurisdictions and shall not be computed for the purposes of the obligations referred to in article 9 (g) of Act No. 23.548.

Article 3: The distribution between the Provinces and the Autonomous City of Buenos Aires of the regimes mentioned in the previous articles shall be carried out according to the indexes that arise from the regulations in force to the date and in the manner provided for in the same.

Article 4: The parties agree to leave without effect all guarantees on the levels to be transferred by the National Government for the regimes covered by the preceding articles.

It is also without effect, in the exercise of the powers established by article 75, paragraph 3 of the National Constitution, the Sixth and Ninth Articles of the "Federal Commitment for Growth and Fiscal Discipline", ratified by article 2 of Law 25.400, as well as article 4 of the Act.

It shall not apply to the provisions of articles 1, 2 and 3 of the present, the provisions of article 3 of the Second Addenda of the "Federal Commitment for Growth and Fiscal Discipline".

Article 5: The parties agree to leave without effect in the terms of article 75, paragraph 3 of the National Constitution, articles 2 and 3 of Act No. 25.082.

Article 6: The parties agree to modify in the terms of article 75, inc. 3 of the National Constitution article 3 of Law 25.413, which shall be drafted as follows: "The seventy percent (70%) of this tax shall enter the National Treasury and shall be administered by the National Executive in order to meet the expenses incurred by the Public Emergency declared in Article 1 of Law 25.561".

Article 7: The parties undertake to sanction a comprehensive federal tax-sharing regime by 31 December 2002, which, on the basis of the above-mentioned provisions, incorporates the following components:

(a) The establishment of a Federal Fiscal Agency, as provided for in article 75, paragraph 2, of the National Constitution.

(b) The establishment of a Federal Anti-cyclical Fund funded by co-participable resources, for the purpose of tempering the effects of economic cycles on the Collection;

(c) A mandatory regime for transparency of tax information at all levels of government;

(d) Coordination mechanisms for public credit and indebtedness of provincial and Autonomous City governments of Buenos Aires;

(e) Assessment of decentralization of functions and services from national to provincial levels.

(f) The implementation of the harmonization and financing of provincial forecasting regimes.

(g) The definition of guidelines to achieve simplification and harmonization of the tax system at all levels of government.

(h) The coordination and mutual collaboration of national, provincial, Autonomous City of Buenos Aires and municipalities.

(i) Establish distribution indicators on incremental collection, based on competencies and functions, that increase correspondence and fiscal efficiency.

(j) The decentralization of the collection and administration of national taxes to the Provinces, as requested, and accepted by the Nation.

PROVINCIAL ENDEUDENT

Article 8: The parties agree that each of the jurisdictions may entrust the National State with the renegotiation of the provincial public debts it accepts, so that they become national titles, provided that the debtor jurisdictions assume with the National State the debt resulting from the conversion and guarantee it with the resources derived from this federal tax sharing regime or the regime that replaces it in the future. The foreign currency debt that becomes national securities is pessified to a ratio of 1 (a) US dollar equal to Weights 1.40 (one with forty cents). The converted provincial debt will be applied to the Reference Stabilization Coefficient (CER) from the pessification date. National titles that convert the provincial public debt operations will accrue a fixed annual interest rate of up to 4 (four) per cent capitalized until August 2002 inclusive, and will have a deadline of 16 (diecise) years, with 3 (three) years of grace for capital maturity from the date determined by the National State.

The above conditions will be adjusted in accordance with which the National Government agrees for its own debt that it becomes a sinful title.

Taking into account the overall indebtedness of each of the Provinces and for the purpose of preserving the normal functioning of the basic services of the Provincial States, the National State will ensure that the services of the rescheduled public debt of each province, including the debt of loans for the privatization of provincial and municipal banks, do not exceed 15 per cent (percent per cent) of the impact of the resources of this federal regime.

In cases of those provincial debts incurred under national law not covered by the aforementioned rescheduling, the National State will collaborate with the Jurisdictions in order to obtain similar treatment.

The debts of the Provinces under foreign law will follow the same guidelines as the National State for its debts, considering the particularities of each provincial jurisdiction.

The debts of the Provinces from programmes funded by multilateral lending agencies will receive the same treatment that the National State obtains for its debts to those agencies. In order to mitigate the eventual impact of the exchange rate on the provincial debt services originating in such loans, the National State shall include budget allocations for that purpose.

The jurisdictions that convert their debts will be subject to fiscal and financial monitoring established by the National State through the Ministry of Economy.

The Nation and Provinces will seek to apply similar criteria to mitigate the impact of debt services contracted by municipalities.

Article 9: It will be a condition for the assumption of debt by the National State that jurisdictions commit to reduce by 60% the fiscal deficit of the year 2002 over the year 2001 and to achieve fiscal balance in 2003. Any new indebtedness shall be expressly authorized by the Ministry of the Economy of the Nation and/or the Central Bank of the Argentine Republic in accordance with the current counter-lord rules. The non-observance of such conditions would make it possible to exclude the benefits referred to in the previous paragraph of the previous article.

OTHER PROVISIONS

Article 10: The parties promote the repeal of Act No. 25.552.

Article 11: The National State undertakes to provide budgetary treatment on an annual basis to the provincial previsional obligations recognized in the Federal Commitment of 6 December 1999, in article 1 of the Federal Commitment for Growth and Fiscal Discipline, in the Second Addenda to the same and in the supplementary and clarification agreements. The same budgetary treatment shall have the recognized commitments that are pending in compliance originating in Clause 16 of the Federal Commitment of 6 December 1999 and on which the Federal Tax Commission is issued in its Resolution No. 69/2000, as well as those for the Provinces that do not participate in the rescheduling of debts provided for in Article 8 of this Agreement. All of them until the sanction of the Comprehensive Regime of Federal Tax Participation provided for in Article 7 of this Law.

Article 12: The present agreement shall begin to govern the first day of March 2002, once ratified by the legislative branches of all the jurisdictions involved, and the signatories shall commit themselves to immediately refer the present agreement to their respective Legislatures.

Article 13: The provisions of articles 1 to 3 shall even govern until 31 December 2002, their validity shall be automatically extended and their forecasts are part of the normative body that integrates the co-participation regime referred to in article 75, paragraph 2, of the National Constitution.

In the City of Buenos Aires at 27 (veintisiete) days of the month of February 2002, after reading and ratification, they sign the participants in proof of conformity.

The Provincial Executive

SAN FERNANDO DEL VALLE DE CATAMARCA,

14 March 2002

Yahweh

PRESIDENT OF THE ARGENTINA DR. Dn. EDUARD:

Through the present, I am pleased to address Mr. President, in order to express to you the decision of the Government of Catamarca to accede to the "Provictional NATION ON FINANCIAL RELATION AND BASES OF A FEDERAL POPULATION REGIME", signed by the National Government and the Provincial States on February 27 of the current year.

For no other reason, I take this opportunity to raise my respects and greet you with my highest consideration. . OSCAR ANIBAL CASTILLO, Governor of Catamarca.

Governor of San Juan

SAN JUAN, March 4, 2002.

Sir

President of the Nation

Doctor EDUARDO ALBERTO DUHALDE

S/D.

In my capacity as Governor of the Province of San Juan, I am writing to you for the purpose of expressing my decision to join the "Provisional NATION ON FINANCIAL RELATION AND BASES OF A FEDERAL POPULATION REGION OF IMPESTOS", signed by the National Government and the Provincial States on February 27, 2002.

In consultation with the Crisis Committee, institutions and personalities of the medium advise me to take such action.

I take this opportunity to greet you with my utmost consideration. . Dr. ALFREDO AVELIN, Governor.