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Key Benefits:
The Senate and Chamber of Deputies
of the Argentine Nation gathered in Congress,
etc.
forcefully sanctioned
Law:
CHAPTER I
Object
ARTICLE 1 . Scope of Application. Believe in the framework of Law 17.319 promotional regimes for the exploration and exploitation of hydrocarbons that will be applied in all provinces that make up the territory of the Argentine Republic, which adhere to it, and the Argentine Continental Shelf.CHAPTER II
Promotional Regime for Exploration
Hydrocarbons
ARTICLE 2 . Categorization and Period of Benefits. The promotional regime defined in this Chapter shall include all areas granted through Law 25,943 and those with geological potential that do not currently exist third-party rights granted by Law 17,319, in jurisdiction of the provinces that accede to this regime, in accordance with the following categorization:(a) Areas in the Continental Shelf: These are those covered by the areas of the continental shelf and the internal waters according to the definitions of Law 23.968, which are not subject to exploration permits or exploitation concessions.
The benefits established in this law will be applicable in these areas for a period of QUINCE (15) years, counted from the date of formal notification of ENERGIA ARGENTINA SOCIEDAD ANONIMA (ENARSA) to the authority of application of the initiation of exploration of an area of its ownership.
(b) Areas in Sedimentary Basins without Production: They are covered by all areas in sedimentary basins in land, excluding basins that at the time of the promulgation of this law have areas in production.
The benefits set out in this law for the aforementioned categorization shall be applicable for a period of DOCE (12) years, counted from obtaining the corresponding exploration permit.
(c) Areas in Sedimentary Basins with Production: These are areas in sedimentary basins in land that, at the time of the promulgation of this law, have areas in production and are not subject to exploration permits or exploitation concessions.
The benefits established in this law shall be applicable in the areas defined in this paragraph, for a period of TEN (10) years, counted from obtaining the corresponding exploration permit.
Article 3 . Allocation mechanism. The areas defined in Article 2 shall be assigned by the respective provinces or the Nation, as appropriate, through the conduct of public examinations, or through the tools authorized by the laws of each jurisdiction. ARTICLE 4 . Association obligation. In order to access the benefits of this regime, and for the subsequent granting of exploitation, the subjects concerned, including the provincial enterprises established or constituted, shall be bound by the ENERGIA ARGENTINA SOCIEDAD ANONIMA (ENARSA), under the corporate legal entity which is deemed appropriate, in accordance with the legislation in force, and under the conditions established by the regulation of this law.Only in the case of express and justified renunciation of ENERGIA ARGENTINA SOCIEDAD ANONIMA (ENARSA), presented to the enforcement authority and approved by ENERGIA ARGENTINA SOCIEDAD ANONIMA (ENARSA), can continue the award process without the requirement of the association.
The waiver of the association obligation shall not proceed once the exploration permit has been awarded, such obligation must be maintained during the granting of consequent exploitation.
The participation of ENERGIA ARGENTINA SOCIEDAD ANONIMA (ENARSA) in the results of the common activities that are carried out within the framework of the association that integrates must have a reasonable relationship with respect to the obligations assumed and contributions made by it and the benefits granted by this law.
ARTICLE 5o . Periods to Access the Benefits of the Promotional Regime. The promotional regime shall apply to any exploration permit granted from the date of publication of this Act and to the following time periods, as appropriate:(a) Areas on the Continental Shelf: CINCO (5) years.
(b) Areas in Sedimentary Basins in Land without Production: CUATRO (4) years.
(c) Areas in Sedimentary Basins on Earth with Production: THREE (3) years.
The application authority may extend these periods with a maximum equivalent for each category at half of the period established above.
ARTICLE 6 . Areas Adyacentes. Access to the adjacent areas will be authorized, through the granting of a new exploration permit, to the holders of exploration permits for areas that are awarded under this regime, provided that the geological continuity between these areas is proven to be fruitful, while it does not affect pre-existing rights of third parties. The delimitation of these adjacent areas shall be the authority of the application authority and shall require the prior conformity of the respective province.CHAPTER III
Promotional Benefits
ARTICLE 7 . Supplementary application. The general tax system shall be applicable to individuals or legal entities who carry out the activities covered by this special regime with the considerations introduced by this Act. ARTICLE 8 . Tax coupo. The total fiscal quota of promotional benefits will be set annually in the respective Budget Law for the National Administration.The quota referred to in the preceding paragraph shall be distributed by the national enforcement authority, so as to include all jurisdictions with hydrocarbon potential areas. To this end, given the relevant instruments of accession, the provincial states shall communicate to the national enforcement authority, the areas that are likely to benefit from this promotion, in compliance with the general requirements of this regime.
The implementing authority shall establish the selection requirements and criteria for the submission of projects intended to benefit from the benefits set out in this Act, shall decide on their approval and set their duration.
It is established that from the second year of the present regime, it must be included in the total quota, those granted in the previous immediate year and those necessary for the continuity or completion of the respective projects.
Article 9 Added Value Tax. With regard to the Attached Value Tax will be applicable, on the entire expenses and investments made in the exploration phase and investments made in the period of exploitation, the accreditation or return provided for in PART II - Tax to the Added Value - Anticipated Return - of Law 25,924 on the Promotion of Investments in Capital Goods and Infrastructure Works. The benefit set forth in this article shall be extended, in each case, by the time limits defined in article 2 of this Act.The benefit indicated in the present may also be used by transitory unions of companies and other subjects specified in the second paragraph of Article 4 of the Value Tax Law added by the tax credits that have billed him for expenses and investments in the area benefited, in which case these subjects may choose between transferring to the respective partners the tax credit for the expenses and investments or by requesting the accreditation or return provided for in Law 25.924.
ARTICLE 10. Winning tax. All active expenses and investments made in the exploration phase and investments, made in the period of exploitation, within the established time frames, for each case, in Article 2 of this Law, shall be amortized in three annual, equal and consecutive assessments, starting from the year in which such expenses and investments are made, and to the extent that such expenses are enabled, or where appropriate, investments are enabled. In all that is not contrary to this law, Law 25,924 and its regulations shall apply. ARTICLE 11. Tax on the minimum wage. Property belonging to the holders of exploration permits and concessions of exploitation granted under the regime of this law, which has been affected by the development of the activities promoted, shall not constitute the basis for the imposition of the Tax on the Minimum Wage established by Law 25.063, or which in the future complements, modifies or replaces, from the date of the award and until the third year, including the granting of concessions for the exploitation of such areas. ARTICLE 12. . Imports. The holders of exploration permits and concessions for exploitation of the areas governed by this law shall be exempt from the payment of import duties and any other right, special tax, correlative tax or statistical rate, excluding the retributive rates of services, by the introduction of capital goods, or parties, or components of such goods, which are not established in the country, which shall be determined by the authority of application, and which shall be determined by the law of operation,Capital assets, parts or components of such assets that are introduced under the protection of the release of rights and pre-established charges may only be disposed of, transferred or disaffected by the activity subject to the permit, after the use that motivated the importation, or its useful life, if the permit is less.
If such property is transferred to an activity not covered by this law, the payment of the rights, taxes or charges that correspond to the date of the transfer shall be made.
The enforcement authority shall establish practices that ensure compliance with the provisions of this article.
The benefit set forth in this article shall be extended, in each case, by the time limits set out in article 2 of this Act, counted from obtaining the corresponding exploration permit.
CHAPTER IV
Exception Regime for Areas of
Exploration in
Concessions Granted by Law 17.319 and
Standards
Complementary
ARTICLE 13. . Framework for Application, Categorization and Periods. This regime may be accepted by the prospective and concessionaires for the exploitation of the concessions granted by Law 17.319 and its supplementary rules, in accordance with the following categorization:a) Subdivided areas in Production - on Continental Shelf: These are areas on the continental shelf, in production, partially explored. The concessionaires may apply to the SECRETARIAT OF ENERGIA for their subdivision, so that a new area is generated.
The area resulting from the subdivision should be considered as a new exploration permit, leaving the area concessed and unexploded. The benefits set out in this law will be applicable in these areas for a period of DOCE (12) years, counted from obtaining the corresponding exploration permit.
(b) Subdivided areas in Production - on Earth: They are areas in land, in production, partially explored. The concessionaires may apply to the SECRETARIAT OF ENERGIA for their subdivision, so that a new area is generated.
The area resulting from the subdivision should be considered as a new exploration permit, leaving the area concessed and unexploded. The benefits established in this law will be applied in these areas for a period of TEN (10) years, counted from obtaining the corresponding exploration permit.
ARTICLE 14. . Branch proposal. The concessionaires shall give consideration to the authority of application to a proposal for subdivision of the area covered by the concession, so that a new area is generated.The area resulting from the subdivision should be considered, by the implementing authority, as a new exploration permit, leaving the area concessed and unexploded. These areas will be assigned by the respective provinces or the Nation, as appropriate, through the conduct of public examinations or through the tools authorized by the laws of each jurisdiction, the present concessionaire must be granted the right of preference to match the best offer in the previously established process, the right to be exercised within the following TREINTA (30) days after the decision-making act of the respective contest.
The implementing authority may only approve the proposal of a subdivision after a resolution that dictates that the application of the sanctioning regime for non-compliance with the provisions of Law 17.319 is not appropriate.
ARTICLE 15. . Association obligation. In order to access the benefits granted by this regime, ENERGIA ARGENTINA SOCIEDAD ANONIMA (ENARSA) must be part of, in association, the exploration permit and the subsequent concession of exploitation. This association will be inescapable of accessing this promotional regime and will be able to adopt the particularities and the corporate legal figure that each case so merits, according to the current regulations.The participation of ENERGIA ARGENTINA SOCIEDAD ANONIMA (ENARSA) in the results of the common activities that are carried out within the framework of the association that integrates must have a reasonable relationship with respect to the obligations assumed and contributions made by it and the benefits granted by this law.
ARTICLE 16. . Periods to Access Benefits. The promotional regime shall apply to any exploration permit granted from the date of publication of this Act and to the following time periods, as appropriate:(a) Subdivided areas in Production - on Continental Shelf: CUATRO (4) years.
(b) Subdivided areas in production - on Earth: DOS (2) years.
The application authority may extend these periods with a maximum equivalent for each category at half of the period established above.
ARTICLE 17. . Extension of the Term. In the event of the approval of the subdivision proposal of the area covered by the concession, the application authority, with the prior agreement of the province involved, in its case, must carry out the administrative procedures to grant, in respect of the new areas the extension of TEN (10) years contemplated in article 35 of Law 17.319, period to be counted from the expiration of the original period of the concession.In the case provided for in the preceding paragraph, the pre-emptive requirement contained in the last part of section 35 of Law 17.319 shall not be applicable.
ARTICLE 18. . Tax benefits. Pursuant to the legal requirements and those established by the enforcement authority in the regulation, the benefits set out in this Act in articles 9, 10 and 12.CHAPTER V
Complementary provisions
ARTICLE 19. Cease profits. The benefits provided for in this Act shall cease as follows:(a) The expiration of the period of the respective exploration permits and exploitation concessions.
(b) Failure to comply with the investment plan that is committed under this law.
(c) Where the expiry of the award is made for the reasons provided for in article 80 of Law 17.319.
In the cases referred to in subparagraphs (b) and (c) above, the default signature shall be entered in the form, time and conditions established by the FEDERAL ADMINISTRATION OF INCOME PUBLICS, autarchical entity within the scope of the MINISTERY OF ECONOMY and PRODUCTION, the taxes that would have been exempted or reduced in due course of the 1998 modifications.68
Failure to comply shall be resolved by an act established by the enforcement authority and shall not correspond, with respect to the subjects covered, the procedure established by articles 16 and following of Law 11.683, text ordered in 1998 and its modifications, but the determination of the debt shall be executed with the simple intimation of payment of the tax and its accessories by the FEDERAL ADMINISTRATION OF PUBLIC INCOMES, without the need of any other substance. With regard to the customs taxes referred to in article 12 of this Act, the provisions of article 794 of Law 22,415 and its amendments (Customs Code) shall apply.
ARTICLE 20. . Integral application. The benefits granted by this Act shall only be of integral application in the period of exploitation of the respective projects, provided that the liquota of the taxes that engrave the exports of the products obtained as a result of the aforementioned exploitation, provided by Law 25.561, or which replaces or replaces it, be equal to or greater than the date of entry into force of the regime established by this Law.In the event that the reference is less, the SECRETARIAT OF HACIENDA of the MINISTERY OF ECONOMY AND PRODUCTION with the assistance of the SECRETARIAT OF ENERGIA of the MINISTERY OF FEDERAL PLANNING, INVERSION PUBLICA And SERVICES will evaluate the impact of this decrease and will be able to eliminate or decrease proportionally the expected benefits in the present, depending on the impact of the new liquid.
ARTICLE 21. . Exclusion. The provisions of this Act shall not apply to projects that enjoy the benefits of Act No. 19,640. ARTICLE 22. . Data and Information property. The national State and the provincial States that accede to the regime of this law shall be co-owners of all the baseline and information data resulting from the exploration and exploitation studies and tasks carried out by ENERGIA ARGENTINA SOCIEDAD ANONIMA (ENARSA) and the corporate figures that access the promotional regime of this law.ENERGIA ARGENTINA SOCIEDAD ANONIMA (ENARSA) and, where appropriate, the associated companies must monthly transfer the information to the SECRETARIAT OF ENERGIA OF THE NATION.
ARTICLE 23. . Implementing Authority. The authority for the implementation of Law 17.319 shall be the authority for the application of the present, except in matters of a tax or fiscal nature in which the SECRETARIAT OF HACIENDA of the MINISTERY OF ECONOMY AND PRODUCTION shall be the authority for the application of the present Law. ARTICLE 24. . Provincial Accession. Invite the provinces and the Autonomous City of Buenos Aires to accede to this law, adopting in the area of their respective jurisdictions, criteria and fiscal benefits similar to those promoted by this regulation. ARTICLE 25. Contact the Executive.IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE ONCE DAYS OF THE OCTOBER OF THE YEAR DOS MIL SEIS.
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ALBERTO BALESTRINI. . JOSE J. B. PAMPURO. . Enrique Hidalgo. . Juan H. Estrada.
