Articles Of Law T.o. 1997 - Full Text Of The Norm

Original Language Title: IMPUESTO A LAS GANANCIAS SUSTITUYENSE ARTICULOS DE LA LEY T.O. 1997 - Texto completo de la norma

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IMPESTS Law 25,784 Law on Gain Tax, text ordered in 1997 and its amendments. Modification. Sanctioned: October 1st, 2003. Promulgated: October 21, 2003.

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

ARTICLE 1 Replace article 8 of the Vocational Tax Act, which was ordered in 1997 and its amendments, with the following:

Article 8.- The profits from the export of goods produced, manufactured, treated or purchased in the country are entirely of Argentinean source, including the transfer of such goods through subsidiaries, branches, representatives, procurement agents or other intermediaries of persons or entities abroad.

The net profit shall be determined by deducting from the sale price the cost of such goods, the costs of transport and insurance to the duty station, the commission and sales expenses and the expenses incurred in the Argentine Republic, as soon as they are necessary to obtain the tax revenue.

For their part, the profits obtained by exporters from abroad by the simple introduction of their products in the Argentine Republic are of foreign source.

Where the operations referred to in this article are carried out with persons or entities involved and their prices and conditions do not conform to market practices between independent parties, they shall be adjusted in accordance with article 15 of this Act.

Moreover, the transactions covered in the present article shall not be considered in accordance with the practices or normal market prices between independent parties, which are carried out with natural or legal persons domiciled, constituted or located in countries of low or no taxation, where the rules of the said article shall apply.

In cases where, in accordance with the above provisions, the import or export of goods in respect of which the international price of público public and notorious knowledge de can be established through transparent markets, trade exchanges or similar, it shall be, except evidence to the contrary, to use such prices for the purpose of determining the net gain of Argentine source.

In the case of operations other than those specified in the preceding paragraph, between independent parties, the taxpayer .exporter or importer Público shall provide the Federal Public Income Administration with the information available therein for the purpose of establishing that the declared prices are reasonably in line with those of the market, including the allocation of costs, profit margins and other data that such agency considers necessary for the control of such operations, provided that the amount carried out annually

ARTICLE 2 Please enter following the fifth paragraph of article 15 of the Winning Tax Act, which was ordained in 1997 and its amendments, the following paragraphs:

Without prejudice to the provisions of the preceding paragraph, in the case of exports made to linked subjects, which are for the purposes of cereals, oleaginous, other products of the land, hydrocarbons and their derivatives, and, in general, goods with known quotation in transparent markets, in which an international intermediary that is not the effective recipient of the goods, shall be considered as the best method in order to determine the price of the Argentinean export.

However, as indicated in the previous paragraph, if the price agreed with the international intermediary is higher than the price of the quote in force at the date mentioned above, the first will be taken to assess the operation.

The method set out in the sixth paragraph of this article shall not apply when the taxpayer demonstrates strongly that the intermediary subject of the foreigner meets, together, the following requirements:

(a) Have a real presence in the territory of residence, have there a commercial establishment where your business is administered and meet the legal requirements of constitution and registration and presentation of accounting states. The assets, risks and functions assumed by the international intermediary must be consistent with the volumes of negotiated operations;

(b) Its main activity should not consist of the acquisition of passive income, the brokering of goods from or to the Argentine Republic or other members of the economically linked group, and

(c) Its international trade operations with other members of the same economic group will not be able to exceed thirty percent (30%) of the annual total of the operations agreed by the foreign broker.

The Federal Public Income Administration may delineate the application of the method used in the preceding paragraphs, where it considers that the cases originating in its introduction have ceased.

This method may also be applied to other exports of goods when the nature and characteristics of international operations so justify.

Notwithstanding the extension of the above-mentioned method to other international operations, it will only be appropriate when the Federal Public Income Administration has found in a fruitful manner that the operations between linked subjects were carried out through an international intermediary who, not being the recipient of the goods, does not meet the requirements detailed in the eighth paragraph of the present.

ARTICLE 3 Replace the last paragraph of Article 18, of the Vocational Tax Act, which was ordained in 1997 and its modifications by the following: In the case of erogations made by local companies that result in proceeds of Argentine source for persons or entities of the foreign country with which such companies are linked or for persons or entities located, constituted, settled or domiciled in jurisdictions of lower or void taxation only ARTICLE 4 el Replace subparagraph (a) of the first paragraph of article 81 of the Vocational Tax Act, a text ordered in 1997 and its amendments, with the following:

(a) The interests of debts, their respective updates and the expenses originated by the constitution, renewal and cancellation thereof.

In the case of natural persons and indivisous successions, the causal relationship provided for in article 80 shall be established in accordance with the principle of property involvement. The concepts referred to in the preceding paragraph will be deductible only when it can be shown that they originate from debts incurred by the acquisition of goods or services that affect the acquisition, maintenance or maintenance of encumbered profits. No deduction shall be made in the case of tax gains which, in accordance with the provisions of this law, pay the retention tax on a single and definitive basis.

Notwithstanding the provisions of the preceding paragraph, the subjects indicated in the same paragraph may deduct the amount of interest in mortgage credits that have been granted to them by the purchase or construction of property destined to the taxpayer's room, or the causator in the case of indivisous successions, up to the sum of pesos twenty thousand ($ 20,000) per year. In the case of condominium properties, the amount to be deducted by each condomino may not exceed the amount resulting from the application of the percentage of its participation on the previously established limit.

In the case of subjects covered by article 49, excluding entities governed by Act No. 21.526 and their modifications, the interest of debts s with the exception of those originated in the loans provided for in article 93 93 (c) (c)) (c)) with respect to non-residents who control them, according to the criteria provided for in article 15 of the present law, shall not be deductible from the tax balance to which corresponds.

The interests which, in accordance with the provisions of the preceding paragraph, are not deductible shall be treated in this law for dividends.

The regulation may determine the inapplicability of the limitation provided for in the two preceding paragraphs when the type of activity that the subject develops warrants it.

Where the subjects referred to in the fourth paragraph of this subparagraph, pay interest in debts .including those relating to negotiable obligations issued under the provisions of Law 23.576 and their modifications cuyo whose beneficiaries are also subject to that rule, they shall apply to them in the form, time and conditions established by the Federal Income Administration. Publics a retention of thirty-five percent (35%), which will have for the holders of such rent the character of payment on account of the tax of this law.

ARTICLE 5° Replace the third and fourth paragraphs of article 84 of the Vocational Tax Act, which was ordained in 1997 and its amendments to the following:

For the purpose of determining the original value of compensable goods, the fees paid and/or accredited to entities of the same economic set, intermediaries in the purchase operation shall not be computed, unless an effective provision of services is proved for such purposes.

ARTICLE 6 Replace subparagraph (c) of the first paragraph of article 93 of the Vocational Tax Act, which was ordered in 1997 and its amendments, with the following:

(c) In the case of interest or retributions paid by credits, loans or deposits of funds of any origin or nature obtained abroad:

1. Forty-three percent (43%) when the borrower of the credit, loan or the funds is an entity governed by Law 21.526 or is involved in financing imports of compensable .-excluding cars proveedores granted by the suppliers.

The presumption set out in this section shall also apply when the appellant is one of the other subjects covered by article 49 of this law, a natural person or an undivided succession, in these cases provided that the creditor is a bank or financial entity based in jurisdictions not considered to be null or low taxation in accordance with the rules of this law and its regulation or is a matter of jurisdictions that have signed with the Argentine Republic, in addition to agreements of exchange of information The financial entities covered by this paragraph are those under the supervision of the respective central bank or equivalent agency.

Identical treatment will be applied when interest or retributions correspond to debt bonds submitted in countries with which there is reciprocity agreement for investment protection, provided that their registration in the Argentine Republic in accordance with the provisions of Law 23.576 and its modifications, is carried out within two (2) years after their issuance.

2. One hundred per cent (100%) when the borrower of the receivable, loan or funds is a subject covered by Article 49 of this Law, excluding entities governed by Law 21.526 and its modifications, a natural person or an undivided succession and the creditor does not meet the status and requirement set out in the second paragraph of the preceding paragraph.

ARTICLE 7 The provisions of this Act shall enter into force on the day of publication in the Official Gazette. ARTICLE 8 Contact the national executive branch.

IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO A DAY OF THE OCTOBER MONTH OF THE YEAR DOS MIL TRES.

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DANIEL SCIOLI. . EDUARDO O. CAMAÑO. . Juan José Canals. . Carlos G. Freytes.