FRENCH TRIBUTARIAS Decree 781/91 Please clarify the scope of the exception contained in article 2 (1) of Decree No. 824/89.

Bs. As., 27/4/91

Article 2 of Act No. 23.697, article 1 of Decree No. 1.930 of 19 September 1990, Decree No. 824 of 21 September 1989, Act No. 22,465, and

CONSIDERING:

That Decree No. 824 of 21 September 1989 had specified the scope of the suspension of subsidies and subsidies provided for in Chapter II of Law No. 23,697.

That under article 1 of the above-mentioned decree, the benefits to be made effective by exempting, reducing, degravating or deferring taxes, fees or contributions not regulated in other chapters of Act No. 23,697 remain included in the exceptions imposed by article 2 of the administrative act.

That, for its part, the penultimate paragraph of article 1 of Decree No. 1930/90 provides that the rules contained in Decree No. 824/89 shall be fully applicable for the interpretation of the scope of the suspension provided for in the first order, as well as for the processing of proposals for new exceptions.

That Chapter IV of Law No. 23.697 suspended the enjoyment of the 50 per cent of the promotional benefits obtained under the promotional regimes established by the Nros Laws. 19,640, 20,560, 21.608, 22.021, 22.702, 22.973, 23,614 and others of the same nature and their respective modifications, regulatory decrees, resolutions and other complementary rules, in all that are exclusively applicable to industrial activities.

That the suspension provided for in Chapter IV, exclusively for industrial projects, was precisely aimed at not discouraging investments in non-industrial projects, as a result of the importance they have for the development of regional economies.

That the regime established by Act No. 22,465 dealt with geopolitical reasons, given the low demographic density of the Patagonian region as well as the chronic difficulties of Lanera production, the main economic activity of the area, circumstances which were proposed to reverse with the rule.

It was also intended to provide residents, given the peculiar characteristics of the region, with an effective possibility of developing their economic activities.

That in the light of the doubts raised regarding the interpretation of articles 1 (f) and 2nd inc. 1) of Decree No. 824 of 21/9/89, it is necessary to clarify the scope of the exception contained in article 2 (1) above.

It is necessary to clarify that such activities are covered by the regimes referred to in article 2 (1) of Decree No. 824 of 21/9/1989.

That the present decree is issued in the use of the powers conferred by article 86, paragraph 1 of the National Constitution.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 Artículo Please note that the tax exemptions provided for in the tax franchise regime established by Act No. 22,465 and their respective modifications, regulatory decrees, resolutions and other supplementary rules, in all those aspects that result from application exclusively to non-industrial activities, are covered by the provisions of article 2 (1) of Decree No. 824 of 21 September 1989. Art. 2o o Note the HONORABLE CONGRESS of the measures set forth in this decree. Art. 3o o Contact, post, give to the National Directorate of the Official Register and archvese. . MENEM. . Avelino J. Porto.