Bs. As., 11 /6/98

VISTO the Internal Revenue Act (t. 1979) and its amendments, Act No. 24.674 and Decree No. 171 of 23 January 1992 and

CONSIDERING:

That the Internal Revenue Act (t. 1979) and its amendments to article 65 of the Act stipulate that legally established or constituted insurance entities in the country shall pay an OCHO tax on the insurance premiums they contract.

That Act No. 24,674 expressly retained the validity of the Internal Tax Act (t. 1979) and its amendments, as regards the insurance tax.

That the total imposition on insurance premiums, including the various taxes that tax them, does not correspond to that existing in the international market, especially in the countries of the MERCADO COMUN DEL SUR (MERCOSUR).

That Decree No. 171 of 23 January 1992 established that the fund for the derogation of the financing of liabilities of the NATIONAL INSTITUTE OF SOCIEDAL REASEGURS OF THE STATE (e.I) would be integrated with the proceeding of the tax set out in articles 65 and 66 of the Internal Revenues Act (t. 1979) and its modifications, with the provision of the NACIONAL EXECUTIVE POWER 4

As a result, it is appropriate to progressively reduce the liquidity of the said tax.

That article 86 of the Internal Revenue Act (t. 1979) and its amendments confer powers on the NATIONAL EXECUTIVE POWER for the dictation of this Decree.

The issuance of well-founded and favourable technical reports referred to in article 86 of the Internal Revenue Act (t. 1979) and its amendments.

That the General Directorate of Humanitarian Affairs of the MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICOS has taken the intervention that belongs to him.

That the present conforms to the powers conferred on the NATIONAL EXECUTIVE PODER by article 86 of the Internal Revenue Act (t. 1979) and its amendments and the provisions of article 2 of Act No. 24,674.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 - Amend the OCHO liquor with CENTIFY CENTER (8.50 per cent) established by article 65 of the Internal Revenue Act (t. 1979) and its amendments to the insurance premiums contracted by the legally established or constituted insurance entities in the country, as follows:

(a) from 1 July 1999 to 30 June 2000: SEIS WITH CENTER CENTER (6.50%).

(b) from 1 July 2000 to 30 June 2001: CENTER CENTES BY SCIENTIFIC (4.50 %)

(c) from 1 July 2001 to 30 June 2002: DOS CON CENTES BY SCIENTY (2.50 %).

(d) since 1 July 2002: UNO POR MIL (1%).

Art. 2° - Be aware, in due course, of the HONORABLE CONGRESS OF NATION.

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