Employees

Decree 105/97

Amend the Rule Decree of the Tax on Gains, a text replaced by Decree No. 2353/86 and its amendments.

Bs. As., 3/2/97

VISTO the Regulatory Decree of the Tax on Gains, a text replaced by Decree No. 2353 of 18 December 1986 and its amendments, and

CONSIDERING:

That by Acts No. 24,475 and No. 24,698, certain amendments have been made to the Vocabulary Tax Act, which was ordered in 1986 and its amendments.

That for the purpose of proper application of these regulations it is necessary to adapt the regulations that complement them.

That the present is given in the use of the powers conferred by article 99, paragraph 2, of the NATIONAL CONSTITUTION.

That's why.

THE PRESIDENT

OF ARGENTINA NATION

RIGHT:

Article 1-Amend the Rule of the Wage Tax Decree, a text replaced by Decree No. 2353 of 18 December 1986 and its amendments, as follows:

(a) Replace article 26 with the following:

"ARTICLE 26-In cases where the approval of the shareholders' assembly or meeting

members refer to directors' fees, trustees, members of monitoring boards or

retributions to managing partners, respectively, assigned globally, for purposes of

the imputation provided for in article 18, first paragraph (b), of the law shall be considered

the fiscal year in which the directory or executive organ performs the individual assignments".

(b) Enter the following article 41:

"ARTICULO 41 - The limitation established in the penultimate paragraph of Article 20 of the Law,

Referring to the remuneration of the executive and counter-remuneration of institutions covered by subparagraphs (f), (g) and (m), it shall not apply to those that retribute a distinct function of nature effectively executed by them. "

(c) Replace item 68 with the following:

"ARTICULO 68.-The assets that the companies covered in subparagraphs (b) and (c) and in the last paragraph of article 49 of the law and the companies of limited liability and in simple and share form, adjudge their partners in the event of dissolution, withdrawal or reduction of capital, shall be considered realized by the company for a price equivalent to the value of the place of the goods at the time of its award"

(d) Replace article 148 with the following:

"ARTICULO 148.-Deduction for directors' fees, trustees, members of monitoring councils or for retribution to managing partners that establishes article 87 (i) of the law may not exceed the greatest of the following limits:

(a) VEINTICINCO BY CIENTO (25 %) of the accounting profits of the exercise.

(b) The amount that results from computing DOCE MIL QUINIENTS PESOS ($ 12,500), for each of the honorarium or agreed amounts. This amount shall be determined on the basis of each perceptor the amount indicated above or the amount of the agreed fees or amounts assigned to it if the latter is lower.

The deductible amount to be determined in accordance with the provisions of the preceding paragraph shall be charged to the exercise by which the fees or amounts agreed upon shall be paid if, within the time limit provided for the presentation of the affidavit of the company concerned, such fees or amounts agreed upon would have been assigned individually by the shareholders ' assembly or the meeting of partners or by the directorate or executive body, if the organs cited in the first term

assigned globally. If the above-mentioned assignments take place later

that amount shall be deducted to the extent that its payment is made and with

imputation to the exercise in which this event takes place.

Remunerations referred to in this article do not include the amounts that directors, trustees, members of the supervisory board or managing partners may receive for other concepts (solutions, fees, etc.), which will have the treatment provided for in the law according to the type of profit in question.

For the purposes indicated, it should be credited that the respective amounts respond to effective service benefits, which their magnitude relates to the task developed and, if appropriate, which has been fulfilled by the relevant forecasting obligations."

(e) Enter the following article 148:

"ARTICLE... The managing partners of limited liability companies,

in simple and in comandite for actions, referred to in articles 18 (b),

second paragraph, 79 (e), second paragraph and 87 (i) of the law, are those who have

be designated as such in the constitutive contract or subsequently by a decision

adopted in the terms prescribed by Law 19550 and its amendments"

(f) Enter the following article 153, the following:

"ARTICULO ...- For the purposes of the provisions of article 88 (1) of the law, vehicles defined as such by article 5, paragraph (a) of Act No. 24.449 shall be understood as "automotive".

In addition, with regard to the provisions of the second paragraph of subparagraph (1), it should be understood that the term "similar" is addressed to those subjects who are engaged in the commercialization of services for third parties, by means of a remuneration, in the conditions and prices set by the companies for which they operate, the risk of the operations carried out by them remains."

(g) Please enter following the article incorporated under the title "Transient Provisions" by Decree No. 2633 of 29 December 1992, the following:

"ARTICLE... - The companies of limited liability and in simple comandite and for actions whose closure of exercise has operated since 28 September 1996, may even, in their tax balance, compute the amount of the breaches that, originated in the determinations of the results of the company corresponding to closed periods prior to the date cited, have been distributed among the partners according to the provisions of Article 50 of the law in force until that date.

Such computation shall be appropriate, to the extent that such breaches have not been used by those, regardless of the exercise of their origin and provided that the expiry period established by article 19 of the law had not elapsed in that respect, considering also the limitations and requirements required by that rule for the computation of the breaches."

" ARTICLE ...-The amounts retained and/or received in respect of the tax on profits to the companies of limited liability and in simple comandita and for shares, as well as the payments on account made by them, corresponding to closed periods prior to 28 September 1996, which according to the treatment established in Article 70 of these regulations would have been transferred to the members, may even be used by the company to determine the amounts imposed on the

"ARTICULO ...-For the purposes set forth in the preceding articles, when the partners have computed in their tax determinations, breaches or retentions originated in activities other than their participation, together with those distributed and/or transferred by the society, it is considered that they have first used these last ones."

Art. 2°-The provisions of this decree shall enter into force on the day of its publication in the Official Gazette and shall take effect from the entry into force of the rules governing it.

Art. 3°-Communicate, publish, give, the National Directorate of the Official Register and archvese.-MENEM.-Jorge A. Rodríguez. - Roque B. Fernández.