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SIMPLIFICATE REGIME FOR CONTRIBUTING SMALLS Law 26.565 Replace the Annex to Law No. 24.977 (Monotribute). Special Social Security Regime for Domestic Service Employees. Replace Article 17 of Law No. 26.063. Posted: November 25, 2009 Cast: December 17, 2009

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

ARTICLE 1 Replace the Annex to Law 24.977, its amendments and supplements, text replaced by Law 25.865, by the Annex adopted by this measure. ARTICLE 2 Replace article 17 of Law 26.063 and its amendments, as follows:

Art. 17: The Special Social Security Regime for Domestic Service Employees, established by Title XVIII of Law 25.239, in respect of the benefits of the National Health Insurance System, established by Laws 23.660 and 23.661, and their respective amendments, shall be subject to the provisions of Article 42 (c) of the Annex to Law 24.977, its amendments and supplements PequeñoR

In order to access the above-mentioned benefits, domestic workers must complete the contributions actually entered in accordance with article 3 of the above-mentioned special regime, to:

(a) A contribution of forty-six pesos with seventy-five cents ($46.75) con to the National Health Insurance System established by Laws 23.660 and 23.661 and their respective modifications y and, if applicable,

(b) An additional contribution of thirty-nine pesos ($ 39), to the taxpayer’s option for the National Social Works Regime established by Law 23.660 and its modifications cada, for the incorporation of each member of their primary family group.

Ten per cent (10 per cent) of the contributions referred to in subparagraphs (a) and (b) above shall be allocated to the Redeployment Solidarity Fund established by article 22 of Law 23,661 and its amendments.

Please provide the Ministries of Economics and Public Finance and Health, through joint resolution, with the mechanisms for adjusting the quotes set out in those paragraphs.

Article 3 The provisions of this Act shall enter into force on the basis of their publication in the Official Gazette and shall have effect on the provisions of article 1 of the present measure, from the first day of the first fourteenth full calendar following the date of the publication. ARTICLE 4 Taxpayers who have resigned or are excluded from the Simplified System for Small Contributors (RS) prior to the validity of this law . without three (3) years after such circumstances occurred,, may enter the same as they meet the new requirements and conditions provided for in the Annex to this measure. Such an option may be exercised only until the completion of the quatrimester referred to in the preceding article. ARTICLE 5o Contact the national executive branch.

IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE VEINTICINCO DIAS OF THE MONTH OF NOVEMBER OF THE YEAR DOS MIL NEW.

_

JULY C. C. COBOS. EDUARDO A. FELLNER. . Enrique Hidalgo. . Juan H. Estrada.

Annex

SIMPLIFICATE REGIME FOR CONTRIBUTING SMALLS (RS)

MONOTRIBUTO

PART I

PRELIMINARY PROVISIONS

ARTICLE 1. An integrated and simplified tax regime on income tax, aggregate value and forecast system is established for small taxpayers.

PART II

DEFINITION OF PEQUEÑO CONTRIBUYENTE

ARTICLE 2. For the purposes of the provisions of this regime, physical persons who sell furniture, locations and/or services, including primary activity, members of cooperatives are considered small contributors, in the terms and conditions specified in Title VI, and indivisous successions as continuums. In addition, irregular de facto and commercial companies are considered small contributors (Chapter I, Section IV, of Law 19.550 of Commercial Societies, text ordered in 1984 and its modifications), to the extent that they have up to three (3) partners.

Concurrently, it must be verified in all cases that:

(a) They would have obtained in the twelve (12) immediate calendar months, prior to the date of accession, gross revenue from the activities to be included in the present regime, less or equal to the sum of pesos two hundred thousand ($ 200,000) or, if it were to be of sale of movable things, that having exceeded that amount and up to the weight of three hundred thousand ($ 300,000) meet the requirement of minimum number of staff expected, for each case, in the third paragraph;

(b) Not exceed in the period specified in subparagraph (a), the maximum parameters of the physical quantities and accruals established for categorization for the purposes of payment of the integrated tax to which they are required;

(c) The unitary maximum price of sale, only in cases of sale of movable things, does not exceed the weight of two thousand five hundred ($ 2.500);

(d) They have not made imports of furniture and/or services during the last twelve (12) months of the calendar year;

(e) Do not perform more than three (3) simultaneous activities or do not possess more than three (3) operating units.

In the case of societies covered by this regime, in addition to meeting the requirements of individuals, all diindividually considered reunir members must meet the conditions for joining the Simplified System for Small Contributors (RS).

ARTICLE 3o.- Subjects carrying out any or some of the activities referred to in the first paragraph of Article 2 of the present regime shall be categorized according to the main activity, taking into account the parameters set out in Article 8 of this Annex, and adding the gross income obtained by all activities included in this regime.

For the purposes of the preceding paragraph, the main activity shall mean that by which the taxpayer obtains greater gross income.

For the purposes of the present regime, gross revenues are considered in the activities, to the production of the sales, locations or benefits for the operations carried out by their own or others, excluding those that have been left without effect and net of discounts made according to the customs of the square.

PART III

SIMPLIFIC REGIME

FOR CONTRIBUTING SMALLS (RS)

ARTICLE 4o.- Subjects that fall under the status of a small contributor, in accordance with Article 2 of the Convention, may choose to adhere to the Simplified Small Contributors Scheme (RS) by taxing the integrated tax that, for each case, is set out in Article 11.

ARTICLE 5o.- Special tax domicile of small taxpayers attached to the Simplified System for Small Contributors (RS), in the terms of Article 3 of Law 11.683, ordained text in 1998 and its modifications, the one declared at the opportunity to exercise the option, except that it had been amended in legal time and form by the taxpayer.

Chapter I

Taxes

ARTICLE 6o.- Income to be made as a result of accession to the Simplified System for Small Contributors (RS) replace the payment of the following taxes:

(a) The Gain Tax;

(b) The Added Value Tax (VAT).

In the case of the societies covered by this regime the Tax on the Gains of its members is replaced, originated by the activities carried out by the entity subject to the Simplified Regime for Small Contributors (RS) and the Tax on the Attached Value (VAT) of the society.

The operations of small taxpayers attached to the Simplified System for Small Contributors (RS), are exempt from the Tax on Livestock and the Tax on Attached Value (VAT), as well as from those taxes that in the future replace them.

Chapter II

Monthly income tax - Categories

ARTICLE 7o.- Small taxpayers attached to the Simplified Small Contributors Scheme (RS) shall .from their adherence to the regime. monthly enter the integrated tax, replacing the taxes mentioned in the preceding article, which will result from the category in which they are framed according to the type of activity, the gross income, the physical quantities and the accruals assigned to it.

The present tax shall be entered until the month in which the taxpayer renounces the regime or, where appropriate, until the definitive cessation of activities within the time frames, terms and conditions determined by the Federal Public Income Administration (AFIP), autarchical entity within the Ministry of Economy and Public Finance.

Please refer to the Federal Public Income Administration (AFIP) to regulate the retroactive decline of the small taxpayer, attached to the Simplified System for Small Contributors (RS).

In cases of waiver or retroactive discharge, the taxpayer may not be required to have any requirements that are not directly related to those required at the time of his discharge.

ARTICLE 8o. The following categories of taxpayers are established in accordance with the annual corrcorrespondient income to the or activities referred to in the first paragraph of Article 2o 2, the physical quantities and the amount of rents accrued annually, as set out below:

CATEGORIA	ENGLISH (ANUAL) SUPERFICIE AFFECTED	SUPERFICIE AFFECTED	ENERGIA ELECTRICA CONSUMIDA (ANUAL)	UNMOT OF DEVENTED ALQUIREMENTS (ANUAL)
B	Up to $24,000	Up to 30 m2	Up to 3,300 kW	Up to $9,000
C	Up to $36,000	Up to 45 m2	Up to 5,000 kW	Up to $9,000
D	Up to $48,000	Up to 60 m2	Up to 6,700 kW	Up to $18,000
E	Up to $72,000	Up to 85 m2	Up to 10,000 kW	Up to $18,000
F	Up to $96,000	Up to 110 m2	Up to 13,000 kW	Up to $27,000
G	Up to $120,000	Up to 150 m2	Up to 16,500 kW	Up to $27,000
H	Up to $144,000	Up to 200 m2	Up to 20,000 kW	Up to $36,000
I	Up to $200,000.	Up to 200 m2	Up to 20,000 kW	Up to $45,000

To the extent that the maximum surface parameters affected by the annual activity and electricity consumption are not exceeded, as well as the accruals arranged for Category I, taxpayers with gross income of up to weight three hundred thousand ($ 300,000) per year may remain attached to the present regime, provided that such income comes exclusively from the sale of movable goods.

In this situation, they will be set in the corresponding category conconforme is indicated in the following table de according to the minimum number of workers in relation to dependence they possess and provided that the gross income does not exceed the amounts that, for each case, are set:

CATEGORIA	MINIMITY OF EMPLETS	ANNUAL BRUTES
J	1	$235,000
K	2	$ 270,000
L	3	$300,000

ARTICLE 9o.- At the end of each four-monthly schedule, the small contributor shall calculate the accumulated gross income, the consumed electricity and the rents accrued in the previous twelve (12) immediate months, as well as the area affected to the activity at that time. When such parameters exceed or are lower than the limits of their category, they will be framed in the corresponding category from the second month of the last month of the respective quatrimestre.

The rightly categorized responsible shall be considered, when set in the category that corresponds to the highest value of its gross .nourish parameters, physical quantities or accrual rentals para parameters for which it must be registered in the category in which it does not exceed the value of any of the parameters set for it.

In the event that the small taxpayer develops the activity in his or her room or other places with different destination, the affected area and the electrical energy consumed in that activity will be considered exclusively as a physical magnitude, as well as the proportional amount of the rent earned. In the event of the existence of a single meter, it is presumed, except evidence to the contrary, that twenty percent (20%) were affected to the encumbered activity, to the extent that activities of low energy consumption are developed. On the other hand, ninety per cent (90%) is presumed, except proof to the contrary, in the case of high energy consumption activities.

Primary activity and provision of services without fixed premises will be categorized exclusively by the level of gross income.

The societies specified in Article 2 may only be categorized from Category D below.

ARTICLE 10. For the purposes set out in Article 8, it is stated that the activity-affected surface parameter will not be applied in urban, suburban or rural areas of cities or populations up to forty thousand (40.000) inhabitants, except for the areas, regions and/or economic activities to be determined by the Ministry of Economy and Public Finance through the Federal Public Income Administration (AFIP).

The national executive branch may increase by up to fifty per cent (50%), the physical quantities to determine the categories provided for in the article, and may establish maximum differential parameters for certain areas, regions and/or economic activities.

ARTICLE 11. The integrated tax for each category is to be entered on a monthly basis, as shown in the following table:

CATEGORIA	LOCATIONS AND/or SERVICE PRESTATIONS	SALE OF COSAS MUEBLES
B	$39	$39
C	$75	$75
D	$ 128	$118
E	$ 210	$194
F	$400	$310
G	$550	$405
H	$700	$505
I	$1600	$1240
J		$2,000
K		$2350
L		$2700

In the case of the societies specified in Article 2 the payment of the integrated tax shall be paid by the society. The amount to be entered will be that of the corresponding category .according to the type of activity, the amount of their gross income and other parameters,, with more than a 20% increase (20%) for each member of the society.

Authorize the national executive branch to bonify .in one or more monthlyities hasta up to twenty percent (20%) of the total integrated tax to enter into an annual exercise, to those small taxpayers who comply with a particular payment modality or who comply strictly with their formal and material obligations.

The small taxpayer who performs primary activity and is part of Category B shall not enter the integrated tax and shall only pay the fixed monthly contributions for social security according to the regulations that are issued for this case.

When the small contributor to the Simplified Small Contributors Scheme (RS) is a subject registered in the National Register of Local Development Electors and Social Economy of the Ministry of Social Development, which is part of Category B, the integrated tax should not be entered either.

Chapter III

Start of activities

ARTICLE 12. In the event of the initiation of activities, the small contributor who chooses to adhere to the Simplified Small Contributors Scheme (RS), shall be placed in the appropriate category in accordance with the physical magnitude of the area affected by the activity and, where appropriate, the amount agreed in the respective rental contract. Failure to have such references will initially be categorized by a reasonable estimate.

After four (4) months, the gross revenues obtained, the electricity consumed and the rents accrued during that period should be annulled, in order to confirm their categorization or to determine their recategorization or exclusion of the regime, according to the figures obtained, and, if necessary, to enter the monthly amount corresponding to their new category from the second month following the last month of the period indicated.

Until twelve (12) months have passed since the beginning of the activity, for the purposes of the first paragraph of Article 9 of this Annex, the gross revenues obtained, the electricity consumed and the rents accrued in each quarter shall be annualized.

ARTICLE 13. When the accession to the Simplified Small Contributors Scheme (RS) occurs after the start of activities, but before twelve (12) months, the taxpayer must proceed to annualize the gross revenues obtained and the electricity consumed in the preceding period to the act of accession, values that together with the area affected to the activity and, where appropriate, to the amount agreed in the respective rental contract will be determined by the category.

When twelve (12) months or more have elapsed since the start of activities, the gross revenues and the electricity consumed accumulated in the last twelve (12) months prior to accession, as well as the rents accrued in that period, shall be considered.

ARTICLE 14. In the event that the small contributor to the Simplified System for Small Contributors (RS), replaces the or the activities declared, or others covered by it, will be applicable in this chapter regarding its new or new activities, corresponding to present an affidavit in which it will determine, if any, the new category.

Chapter IV

Date and form of payment

ARTICLE 15. The payment of the integrated tax and the forecast quotes set out in article 39, by small contributors to the Simplified Small Contributors Scheme (RS), shall be made monthly in the form, time and conditions established by the Federal Public Income Administration (AFIP).

The monthly tax obligation may not be subject to fractionation, except where retention or perception regimes are available.

Please provide the Federal Public Income Administration (AFIP) with the establishment of perception regimes at the source as well as special payment regimes that cover seasonal activities, both with respect to the integrated tax and fixed social security contributions.

Chapter V

Affidavit - Categorizer and Recategorizera

ARTICLE 16. Small taxpayers who opt for the Simplified Regimen for Small Contributors (RS) shall, at the time of exercising the option, submit to the assumptions provided for in Chapter III of the present regime, or where there is any of the circumstances that determine their recategorization in accordance with Article 9th, a determined affidavit of their status vis-à-vis the regime, in the form, time and conditions established by the Federal Public Administration.

Chapter VI

Option to the Simplified Regime for Small Contributors (RS)

ARTICLE 17. The option to the Simplified Small Contributors Scheme (RS) will be enhanced by adhering to the eligible under Article 2 under the conditions established by the Federal Public Income Administration (AFIP).

The option exercised in accordance with this article shall subject taxpayers to the Simplified System for Small Contributors (RS) from the immediate month following the one in which it is made, until the month in which it is requested to withdraw from activity or by waiver of the regime.

In the event of the start of activities, the subjects may adhere to the Simplified System for Small Contributors (RS) with effect from the month of accession, including.

ARTICLE 18. The Simplified Regime for Small Contributors (RS) may not be opted for by those responsible for any of the grounds provided for in Article 20.

Chapter VII

Renunciation

ARTICLE 19. Taxpayers attached to the Simplified System for Small Contributors (RS) may waive the same at any time. This waiver shall have effect from the first day of the following month, and the taxpayer may not again opt for the present regime until after three (3) calendar years after the resignation, provided that it occurs in order to obtain the character of responsible inscribed against the Attached Value Tax (VAT) for the same activity.

The waiver will imply that taxpayers must comply with their tax and social security obligations under the respective general regimes.

Chapter VIII

Exclusions

ARTICLE 20. Taxpayers are excluded in full law from the Simplified System for Small Contributors (RS) when:

(a) The sum of the gross income from the activities included in the present regime, in the last twelve (12) immediate months prior to the acquisition of each new gross income exconsidering the same el exceeds the maximum limit established for Category I or, where appropriate, J, K or L, as provided for in the second paragraph of Article 8;

(b) The physical parameters or the amount of the accruals exceed the maximum established for Category I;

(c) The minimum number of workers in relation to dependency required for categories J, K or L, as appropriate, is not reached.

In the event that the minimum number of staff is reduced in relation to dependency required for such categories, the exclusion shall not apply if such amount is recovered within the calendar month after the date the reduction occurred;

(d) The unit ' s maximum price for sale, in the case of contributors for the sale of movable things, exceeds the amount set out in paragraph 2 (c);

(e) Seek goods or expenses of a personal nature, for a value incompatible with the stated income and, as long as they are not properly justified by the taxpayer;

(f) Bank deposits, duly purged — in the terms provided for in article 18 (g) of law 11.683, text ordered in 1998 and its modifications sus, are incompatible with the income declared for the purposes of their categorization;

(g) They have lost their quality as subjects of this regime or the conditions set out in article 2 (d) are not met;

(h) Perform more than three (3) simultaneous activities or possess more than three (3) operating units;

(i) Performing locations and/or services, they would have been categorized as if they were selling furniture;

(j) Their operations are not supported by the respective invoices or equivalent documents for the purchases, locations or benefits applied to the activity, or their sales, locations and/or services;

(k) The amount of the purchases plus the expenses inherent in the development of the activity in question, carried out over the last twelve (12) months, total an amount equal to or greater than eighty percent (80%) in the case of sale of goods or forty percent (40%) in the case of locations and/or services, of the maximum gross income set out in Article 8 for Category I or, in its case, L, J, K, or L, as provided for in the second paragraph

ARTICLE 21. The occurrence of any of the grounds mentioned in the previous article will produce, without the need for any intervention by the Federal Public Income Administration (AFIP), the automatic exclusion of the regime from the zero (0) hour of the day on which it is verified, the taxpayer must communicate, immediately, that circumstance to the said agency, and request the discharge in the general tax and the resources of the social security system,

In addition, when the Federal Public Income Administration (AFIP), based on the information in its records or the verifications it performs under the powers conferred on it by law 11.683, ordained text in 1998 and its modifications, it is stated that a taxpayer attached to the Simplified Scheme for Small Contributors (RS) will be included in any of the aforementioned reasons for computer exclusion, checks will be made except for the exclusion of the certificate.

In such a case, the exclusion will have effects from the zero (0) hour of the day the respective cause occurred.

Taxpayers excluded under the provisions of this article shall be discharged from office or their request in the taxpayers impositives and social security resources. of the general regime of which they are responsible according to their activity, not being able to re-enter the regime until after three (3) calendar years after graduation.

The integrated tax that the taxpayer has paid since the expiry of the case of exclusion shall be taken as payment on account of the taxes due under the rules applicable to the general regime.

ARTICLE 22. The status of a small contributor is not incompatible with the performance of dependency activities, nor with the perception of retirement, pension or retirement benefits, corresponding to any national or provincial regimes.

Chapter IX

Billing and registration

ARTICLE 23. The taxpayer attached to the Simplified Small Contributors Scheme (RS) must demand, issue and deliver the invoices for the operations it carries out, being obliged to keep them in the form and conditions established by the Federal Public Income Administration (AFIP).

ARTICLE 24. The acquisitions made by the subjects attached to the Simplified System for Small Contributors (RS) do not generate, in any case, tax credit and their sales, locations or benefits do not generate tax debit for themselves, nor tax credit for their acquirers, locators or borrowers, in the Attached Value Tax (VAT).

Chapter X

Exhibition of identification and proof of payment

ARTICLE 25. The taxpayers attached to the Simplified Small Contributors Scheme (RS) must display in their establishments, instead visible to the public, the following elements:

(a) Indicative plaque of its status as a small contributor and of the category in which it is attached to the Simplified System for Small Contributors (RS);

(b) Payment voucher for the last month of the Simplified System for Small Contributors (RS).

The display of the indicative plate and the proof of payment shall be deemed inseparable in order to fulfil the obligation provided for in this article.

The lack of display of any of them will bring the consummation of the infringement contemplated in article 26 (a), with the modalities indicated therein.

The record of payment referred to in this article shall be that of the category in which the small taxpayer must be categorized, and the corresponding category fails to comply with the alleged duty of exhibition.

Chapter XI

Applicable rules of procedure - precautionary measures and sanctions

ARTICLE 26. The application, perception and control of the levy created by this regime shall be carried out by the Federal Public Income Administration (AFIP) and shall be governed by the provisions of Act No. 11,683, which was ordained in 1998 and its amendments, to the extent that they do not oppose the following provisions:

(a) They shall be sanctioned with closure from one (1) to five (5) days, the small taxpayers attached to the Simplified Small Contributors Scheme (RS) who incur the facts or omissions provided for in article 40 of the aforementioned Act or when their operations are not supported by the respective invoices or documents equivalent to the purchases, locations or benefits applied to the activity. The same penalty shall be applied in the absence of the display of the indicative plate of its status as a small taxpayer and of the category in which it falls within the regime or the respective proof of payment;

(b) They shall be punished by a fine of fifty percent (50%) of the integrated tax that would have been paid to them, the small taxpayers attached to the Simplified System for Small Contributors (RS) who, as a result of the failure to submit the affidavit of recategorization, omit the payment of the due tribute to them. The same penalty shall apply when the affidavits catecategorizers or recategorizers presentadas presented are inaccurate;

(c) The Federal Public Income Administration (AFIP) will proceed to re-categorize on its own initiative, liquidating the resulting debt and applying the penalty set out in the preceding paragraph, when small contributors attached to the Simplified Small Contributors Scheme (RS) had not fulfilled the obligation set out in the first paragraph of Article 9 or the re-categorization carried out was inaccurate.

The recategorization, determination and punishment provided for in the preceding paragraph may be resorted to by small contributors through the filing of an appeal under article 74 of Decree 1397 of 12 June 1979 and its amendments.

In the event that the small taxpayer accepts the ex officio recategorization by the Federal Public Income Administration (AFIP), within fifteen (15) days of its notification, the penalty applied on the basis of the provisions of subparagraph (b) of this article shall be reduced in full by half.

If the small taxpayer is recategorized before the Federal Public Income Administration (AFIP) proceeds to notify the particular debt, he shall be exempt from the penalty provided for in subparagraph (b) of this article;

(d) In the case of exclusion of taxpayers attached to this regime and their registration of office in the general regime, the procedure set out in the preceding paragraph shall apply, as appropriate;

(e) The instrument submitted by those responsible to banking entities at the time of the taxation, constitutes the payment communication referred to in article 15, so it has the character of affidavit, and the omissions, errors or falsehoods that are verified in it are subject to the penalties provided for in the law. The type that credits the payment of the tax and which is not observed by the taxpayer at the time of its issuance is full proof of the declared data.

ARTICLE 27. The deadlines for months set in this Annex will be counted from zero (0) time of the day they start and up to zero (0) time of the day they end.

Chapter XII

Rules for added value tax (VAT)

ARTICLE 28. Small contributors attached to the Simplified Small Contributors (RS) Scheme shall be subject to the following provisions regarding the rules of the Added Value Tax Act, which was ordained in 1997 and their amendments:

(a) Those who have resigned or excluded from the Simplified Regimen for Small Contributors (RS) and acquire the quality of inscribed responsible, shall be liable to the treatment provided for in Article 16 by the tax that has been invoiced to them as a result of taxable facts prior to the date on which their change of status against the tax results;

(b) They are exempted from the regime set out in article 19, the operations recorded in the cereal markets where the alien is a small contributor to the Simplified Small Contributors Scheme (RS);

(c) The operations of those who sell on behalf of third-party property, referred to in article 20, shall not generate tax credit for the Commissioner or consignee when the Commissioner is a small contributor to the Simplified Small Contributors (RS) Regime.

Chapter XIII

Standards on Gain Tax

ARTICLE 29. The acquisitions, locators or borrowers of the subjects covered by this regime may only be computed in their settlement of the Gain Tax, the operations performed with the same supplier subject up to a total of ten percent (10%) and for the whole of the suppliers up to a total of thirty percent (30%), in both cases on the total purchases, locations or benefits corresponding to the same fiscal year. In no case may the following periods be charged with the remnant that may result from such limitations.

The national executive branch may reduce the percentages indicated above by up to two percent (2%) and up to eight percent (8%), respectively, in a differential manner for certain areas, regions and/or economic activities.

The limitation indicated in the first paragraph of this article shall not apply when the small contributor operates as a supplier or service provider for the same subject on a recurrent basis, in accordance with the parameters to be determined by the Federal Public Income Administration (AFIP).

Where the sellers, locators or lenders are subject to Part IV of this Annex, the provisions of Article 32 shall apply.

Chapter XIV

Exceptional situations

ARTICLE 30. Where taxpayers subject to this regime are located in certain areas or regions affected by natural disasters that involve severe damage to exploitation, the tax to be entered will be reduced by 50 per cent (50%) if the agricultural emergency has been declared, and by seventy-five per cent (75%) in the event of a declaration of disaster, the provisions of the law 26,509 as appropriate and 24,9 were applied to those taxpayers.

When sales revenues for two annual production cycles are accumulated in the same year period, or production stocks are liquidated for exceptional reasons, the Federal Public Income Administration (AFIP), at the request of the person concerned, may consider income weighting methods for the purpose of categorization or recategorization that fits the real dimension of exploitation.

PART IV

REGIME OF SOCIAL INCLUSION AND PROMOTION OF INDEPENDENT WORK

Chapter I

Scope of application - Concept of independent worker promoted -

Regime income requirements

ARTICLE 31. The Simplified Regime for Small Contributors (RS) provided for in this Annex, with the benefits and caveats indicated in this Title, will apply to independent workers who need further promotion of their activity to achieve their integration into the formal economy and access to equal opportunities.

The following conditions shall be fulfilled in order to adhere to and remain in the regime of this Title:

(a) Being a natural person aged 18 years;

(b) Develop exclusively an independent activity, which is not the import of movable and/or services and does not possess stable premises or establishment. This last limitation shall not apply if the activity is performed in the independent worker's room house, provided that it does not constitute a local;

(c) That the activity is the only source of income, not being able to adhere to those who review the character of retirees, pensioners, employees in relation to dependency or those who obtain or receive other income of any kind, whether national, provincial or municipal, except those from social plans.

Provide the national executive branch with a view to identifying activities to be considered for the purposes set out in the preceding paragraph;

(d) No more than one (1) operating unit;

(e) In the case of location and/or service delivery, do not carry out in the calendar year more than six (6) operations with the same subject, or exceed in these cases of recurrence, each operation the sum of pesos a thousand ($ 1000);

(f) Do not retain the character of an employer;

(g) Not to be a contributor to the Personal Property Tax;

(h) Not having obtained in the twelve (12) immediate calendar months prior to the time of accession, gross income exceeding twenty-four thousand pesos ($ 24,000). Where income from prior periods is obtained during such periods, the same shall also be computed for the purposes of the said limit;

(i) The sum of the gross income obtained in the last twelve (12) immediate months prior to the acquisition of each new gross income .considering the same nuevo should be less or equal to the amount provided in the preceding subparagraph. Where income from prior periods is obtained during that period, the same shall also be computed for the purposes of the said limit;

(j) If it were a graduated university subject provided that the two (2) years had not been exceeded since the date of issuance of the respective title and that the same was obtained without the obligation to pay fees or fees for the studies studied.

Indivisous successions, even as a continuum of a subject attached to the regime of this Title, may not remain in the same.

ARTICLE 32. For the purposes of the limit referred to in subparagraphs (h) and (i) of the preceding article, it shall be admitted, as an exception and for the only time, that the gross income to be computed exceeds the ceiling provided for in those subparagraphs in no more than five thousand pesos ($ 5,000), when the receipts for periods prior to the consideration should be added.

The purchasers, lobbies and/or borrowers of the subjects covered by this Title regime shall in no case compute in their settlement of the profit tax, the transactions carried out with such subjects, nor shall such operations result in any tax credit calculation in the Attached Value Tax (VAT), except for those activities and assumptions specifically determined by the Federal Public Income Administration (FIP).

Chapter II

Benefits and contributions

ARTICLE 33. The regime provided for in this Title for social inclusion and the promotion of independent work includes:

(a) Payment of a "social inclusion fee" that replaces the monthly obligation to enter the forecast quote provided for in article 39 (a);

(b) The option of accessing the benefits provided for in article 42 (c) under the conditions provided for; (c) The exemption from the payment of the integrated tax established in Chapter II of Title III of this Annex.

Adherence to the regime of this Title implies a categorization as a small contributor to all effects.

Chapter III

Social inclusion fee

ARTICLE 34. The social inclusion fee referred to in the previous article consists of a payment in the account of the forecast contributions set out in article 39 (a) by the small contributor. Please refer to the national executive branch to establish the minimum monthly value for social inclusion quotas for those who adhere to the regime provided for in this Title.

Such payment shall be replaced by the income of an equivalent amount, which shall be made by the acquirers, locators, borrowers and/or any other subject involved in the marketing chain, which specifically determines the Federal Public Income Administration (AFIP), by virtue of the existence of reasons that justify it.

To that end, the said agency shall have the activities that shall be reached, the obligatory subjects and the form and deadlines for the respective income.

Once each year has been completed, the subscriber shall calculate the amount of months cancelled, for which to attribute the contributions paid to the substituted contributions for each of the months, until the depletion of those contributions.

When the amount of months cancelled, as set out in the preceding paragraphs, is less than those that the independent worker promoted remained in the regime of this Title, he may choose to enter the contributions corresponding to the missing months or his fraction .al value at the time of payment—, to be considered a regular contributor.

The Social Security Secretariat of the Ministry of Labour, Employment and Social Security will determine the requirements to consider workers of this Title as irregular contributors with right.

Chapter IV

Health benefits and coverage

ARTICLE 35. Benefits for independent workers promoted under the Simplified System for Small, Contributors (RS) when contributions have been entered in accordance with the provisions of this Title de for the entire period required a, shall be provided for in Article 42 (a), (b) and (d).

The periods in which promoted independent workers had not entered the above quotes shall not be computed for the purposes of such benefits. However, they will have the possibility of their computation, if they enter the same . at any time, to the current value at the time of their cancellation.

ARTICLE 36. The promoted independent workers may choose to access the benefits provided for in article 42 (c) of the Simplified System for Small Contributors (RS).

The exercise of the option requires payment of the contributions provided for in subparagraph (b) and, where appropriate, in article 39 (c), the income of which shall be made monthly in the form, time and conditions established by the Federal Public Income Administration (AFIP).

The subject may also desist from the option, only once a calendar year, in the form and conditions provided by the agency.

Such withdrawal shall not be effected in the year in which the option referred to in the first paragraph of this article was exercised.

Chapter V

Permanence and exclusion

ARTICLE 37. Where any of the conditions required in this Title are ceased or the subject has waived the regime of the same, the independent worker promoted will be reached from that time by the provisions of Titles III and V . in the event of opting for the regime provided for and provided that it meets the conditions set out in Article 2o,, or otherwise by the general tax regime and social security resources.

In such cases, the promoted independent worker may not again exercise the option of acceding to this Title until two (2) calendar years have elapsed since his exclusion or resignation, as appropriate, and return to the conditions for such accession.

PART V

SPECIAL REGIME OF SOCIAL SECURITY RESOURCES FOR CONTRIBUTING SMALLS

ARTICLE 38. The employer under this law shall enter, by his dependent workers, the contributions, contributions and quotas established in the general regimes of the Argentine Integrated Provision System, the Institute of Social Services for Retired and Pensioned, the National Health Insurance System Regime, Family Assignments and the National Employment Fund and the Labour Risks Act, within the time and forms established by the rules of substance and procedure.

ARTICLE 39. The small contributor to the Simplified Small Contributors (RS) Scheme that performs activities under Article 2 (b) of Law 24,241 and its amendments, is framed from its accession to the Argentine Integrated Previsional System (SIPA) and replaces the monthly personal contribution provided for in Article 11 of the same, with the following fixed previsional quotations:

(a) Weight carriers hundred and ten ($ 110), for the Argentine Integrated Previsional System (SIPA);

(b) Weights 70 ($ 70), for the National Health Insurance System established by Laws 23.660 and 23.661 and their respective amendments, of which 10 percent (10%) will be allocated to the Redeployment Solidarity Fund established by Article 22 of Law 23.661 and its amendments;

(c) Additional contribution of seventy pesos ($ 70), to the taxpayer ' s option, to the National System of Social Works established by law 23.660 and its modifications, for the incorporation of each member of their primary family group. Ten per cent (10 per cent) of this additional contribution will be allocated to the Solidary Redeployment Fund established by article 22 of Law 23,661 and its amendments.

When the small contributor to the Simplified Small Contributors Scheme (RS) is a subject registered in the National Register of Local Development Effects and Social Economy of the Ministry of Social Development, which is part of Category B, the monthly contribution set out in subparagraph (a). In addition, the contributions of subparagraphs (b) and (c) shall be entered with a decrease of fifty per cent (50%).

ARTICLE 40. They are exempt from all the contributions indicated in the preceding article:

1. Children under 18 years of age, under article 2 of Law 24,241 and its amendments.

2. Self-employed persons referred to in the first paragraph of article 13 of Law 24,476 and its regulation.

3. University professionals who for this activity are obligatoryly affiliated with one or more provincial regimes for professionals, in accordance with article 3, paragraph 4 (b), and its amendments.

4. Subjects who, simultaneously with the activity by which they adhere to the Simplified Small Contributors Regime (RS). are engaged in an activity in relation to dependence and contribute to such a character to the national regime or to some provincial predictive regime.

Self-employed workers referred to in the second paragraph of Article 13 of Law 24,476 and its regulations, which are adhered to the Simplified System for Small Contributors (RS), shall only enter ). in their status as self-employed persons la the quote provided for in Article 39 (a) for the Argentinean System (SIPA). Such a contribution shall not bring to the worker the right to readjust any of its forecast benefits.

ARTICLE 41. The partners of the companies listed in Article 2 that adhere to the Simplified System for Small Contributors (RS) shall individually enter the quotes specified in Article 39 of this regime.

ARTICLE 42. Social security benefits for small contributors to the Simplified Small Contributors Scheme (RS), for the periods in which they had made the contributions in accordance with Article 39, shall be as follows:

(a) Universal Basic Benefit (PBU), provided for in article 17 of Law 24,241 and its amendments;

(b) Retirement for invalidity or death pension, provided for in article 17 of Act No. 24,241 and its amendments, which shall be calculated on the basis of the application of the percentages provided for in article 97 (a) or (b), as appropriate, on the amount of the Universal Basic Benefits (PBU), provided for in article 17, both of the Act;

(c) The benefits provided for in the National Health Insurance System, established by laws 23,660 and 23,661 and their respective modifications, for the small taxpayer and in the event that the latter exercised the option of article 39 (c) for their primary family group. The small taxpayer may choose the social work that will perform the benefits from his accession to the Simplified Small Contributors Scheme (RS) pursuant to Decree 504 of 12 May 1998 and its amendments. The national executive branch shall have a certain number of months of the contributions set out in subparagraph (b) and, where appropriate, (c) of article 39, which shall have been entered for a period prior to the appropriate date of granting the coverage, as a requirement for the benefit provided in this paragraph. The respective social work may provide the participant with full coverage, during the period of lack established by the regulation, by collecting the relevant insurance;

(d) Medical-assistance coverage by the National Institute of Social Services for Retired and Pensioned Persons (INSSJP) in the terms of Act No. 19,032 and its amendments, when acquiring the status of retiree or pensioner.

In order to access the benefits set out in subparagraph (c), the taxpayer must be up to date with the contributions to this simplified regime (RS). The health insurance agent may dispense with the disaffiliation of the small taxpayer in the absence of payment of three (3) consecutive monthly contributions and/or five (5) alternates.

ARTICLE 43. Adherence to the Simplified Regime for Small Contributors (RS), excludes the emerging forecast benefits of differential regimes for the exercise of painful or risky activities for contributors as self-employed.

ARTICLE 44. Without prejudice to article 42 (a) and (b), article 125 of Act 24,241 and its amendments are fully implemented.

ARTICLE 45. For situations not provided for in this Title, the provisions of the Acts 19,032, 23,660, 23.661, 24,2441 and 24,714 shall be supplemented by their respective amendments and supplementary rules, as well as the decrees and resolutions governing them, provided that they are neither opposed nor incompatible with the provisions of this Act.

ARTICLE 46. In view of the incorporation of beneficiaries by application of this law, the national State shall ensure and provide the necessary funds to maintain the level of financing of the Argentine Integrated Provident System (IPS) and its appropriate benefits.

PART VI

WORKING COOPERATIVES

ARTICLE 47. Work cooperative partners may join the Simplified Small Contributors Scheme (RS).

Subjects whose annual gross income does not exceed the sum of twenty-four thousand pesos ($ 24,000) shall only be obliged to enter the forecast quotes provided for in Article 39 and shall be exempt from joining any amount by the integrated tax.

Those partners whose annual gross income exceeds the amount specified in the preceding paragraph shall pay .plus of the forecast quotations el the corresponding integrated tax, in accordance with the category in which they are to be matched, in accordance with the provisions of Article 8, taking only into account the annual gross income obtained.

Subjects associated with cooperatives registered in the National Register of Local Development and Social Economics of the Ministry of Social Development whose annual gross income does not exceed the sum of twenty-four thousand pesos ($ 24,000) will be exempt from entering the integrated tax and the monthly projected contribution set out in article 39 (a) of this Annex. In addition, the contributions indicated in subparagraphs (b) and (c) of the said article shall be entered with a decrease of fifty per cent (50%).

ARTICLE 48. The working cooperatives, whose modalities for the provision of services and income fall within the specifications set out in Title IV, may adhere to the scheme provided for in this Title.

Subjects referred to in the fourth paragraph of the preceding article shall be exempt from entering the payment under article 33 (a).

ARTICLE 49. In all cases, the co-operative will be an agent for the retention of contributions and, as appropriate, the integrated tax, which, according to the provisions of this Title, its partners should enter the Simplified System for Small Contributors (RS).

Retention will be practiced at each time when the cooperative liquidates payments to its partners in advance of the annual outcome. To this end, the form of receipt to be delivered by the cooperative must have preset the item for the retention set out in this article.

ARTICLE 50. The working cooperatives that initiate their activity, at the time of applying for registration with the Federal Public Income Administration (AFIP), must also request the accession to the Simplified System for Small Contributors (RS) of each of their associates or, as appropriate, in the Social Inclusion and Promotion of Independent Labour Act established in Title IV of this Annex, in the terms, timelines and conditions provided for such public administration.

ARTICLE 51. Those associated with the working cooperatives that were in operation at the date of promulgation of this Act may opt for their accession to the Simplified System for Small Contributors (RS) or, where appropriate, to the Social Inclusion and Independent Labour Promotion Regime established in Title IV of this Annex. In these cases, the co-operative of work must adapt to the provisions of this Title.

PART VII

OTHER PROVISIONS

ARTICLE 52. Please refer to the Federal Public Income Administration (AFIP) to modify, once (1) a year, the maximum amounts of billing, the amounts of the rents earned and the amounts of the integrated tax to be entered, corresponding to each category of small taxpayer, as well as the fixed forecast quotations, in a proportion that may not exceed the rate of mobility of the foreseeable benefits, as provided for in article 24, and supplementary regulations.

ARTICLE 53. Faccinate the Federal Public Income Administration (AFIP) to:

(a) Dictate the complementary rules necessary to implement the provisions of the Simplified Regime for Small Contributors (RS), especially regarding the registration of small taxpayers, their high, low and modifications;

(b) Subscribe agreements with the provinces, with the Autonomous City of Buenos Aires and municipalities throughout the Argentine Republic, after the authorization of the province to which they belong, for the purposes of the application, perception and control of the Simplified Regime for Small Contributors (RS), in which case they may establish a compensation for the management they carry out, which will be paid for the detraction of the amounts collected;

(c) To conclude agreements with the governments of the provincial, municipal and/or Autonomous City of Buenos Aires, for the purpose of exercising the power of perception and, where appropriate, of application, interpretation and/or control over the taxes of the indicated jurisdictions, corresponding only to the small taxpayers who were found in the category of the Simplified Small Contributors (RS) Scheme.

The agreements entered into force on the date determined by the Federal Public Income Administration (AFIP) as the beginning of the annual payment period for the Simplified Small Contributors Scheme (RS), of the immediate year following that of its publication in the Official Gazette. Its denunciation, by any party, will have an effect in the following year to that effect, from the date indicated above.

The expenses that demand the performance of the agreed functions will be borne by the provincial, municipal and/or the Autonomous City of Buenos Aires, in the percentage of the collection established in the agreement.

ARTICLE 54. The Federal Public Income Administration (AFIP) may verify through retirees, pensioners and students, without dependency, the fulfilment of the obligations of taxpayers attached to the Simplified Small Contributors Scheme (RS).

ARTICLE 55. The collection of the integrated tax, referred to in article 11, shall be:

(a) Seventy per cent (70%) to the financing of the benefits administered by the National Social Security Administration (ANSES), a decentralized agency under the Social Security Secretariat of the Ministry of Labour, Employment and Social Security;

(b) Thirty percent (30%) to provincial jurisdictions on a daily and automatic basis, according to the secondary distribution provided for in Law 23.548 and its modifications, including the province of Tierra del Fuego, Antarctica and South Atlantic Islands, according to the corresponding rule. This distribution will not set a precedent for the purposes of the partnership.