VOLUNTARY EXTERNALIZATION OF FOREIGN CURRENCY HOLDING IN THE COUNTRY AND ABROAD

Law 26,860

Creation of Instruments. General Provisions. Sanctioned: May 29, 2013 Enacted: May 31, 2013

The Senate and Chamber of Deputies of the Argentine Nation, meeting in Congress, etc., are sanctioned by law:

TITLE I

The creation of the instruments

ARTICLE 1 °-Authorize the Ministry of Economy and Public Finance to issue the "Argentine Savings Bond for Economic Development (BAADE)", registrable or bearer, and the "Pagare de Ahorro para el Desarrollo Económico". Both instruments shall be denominated in US dollars and shall have the other financial conditions to be determined at the time of issue. The funds raised in the issue to be carried out will be allocated exclusively to the financing of public investment projects in strategic sectors, such as infrastructure and hydrocarbons.

ARTICLE 2 °-Authorize the Central Bank of the Republic of Argentina to issue the "Certificate of Deposit for Investment (CEDIN)", in U.S. dollars, which will be nominative and endurable, constituting itself an ideal means for the cancellation of obligations to give sums of money in US dollars and whose financial conditions will be established by regulations of the Central Bank of the Argentine Republic. The subscription of the said certificate must be processed before an entity within the regime of Law 21,526 and its modifications, which will receive the funds for account and order of the Central Bank of the Argentine Republic, and must be entered in the account designated by the monetary authority within twenty-four (24) hours of receipt of the same. The said Certificate of Deposit for Investment (CEDIN) will be cancelled in the same currency of its issue, by the Central Bank of the Argentine Republic or the institution indicated by it, when it is presented by the holder or his/her endoscopist. subject to its cancellation to the prior accreditation of the sale of land, sheds, premises, offices, garage, lots, plots and dwellings already built and/or to the construction of new housing units and/or refaction of buildings, in the conditions established by the Central Bank of the Argentine Republic in its

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regulations.

TITLE II

Voluntary externalisation of foreign currency holding in the country and abroad

ARTICLE 3-The natural persons, the individual successions and the subjects covered by Article 49 of the Law on Income Tax, text ordered in 1997 and their modifications, registered or not, may voluntarily exteriorize the holding of foreign currency in the country and abroad, under the conditions laid down in this Title. The aforementioned externalization includes the holding of foreign currency in the country and abroad as of April 30, 2013, including. Foreign currency holding may also be incorporated in the country and abroad resulting from the production of existing goods as at 30 April 2013.

ARTICLE 4 °-Exteriorization of the holding of foreign currency, as referred to in Article 3 of this Law, shall be made: (a) For the holding of foreign currency in the country: through its deposit in entities covered by the regime of law 21,526 and its modifications, within the period of three (3) calendar months, counted from the following immediate month of the date of publication in the Official Gazette of the rules governing the Federal Administration of Public Revenue and in the manner available to it; b) For the holding of foreign currency abroad: by means of its transfer to the country through entities within the scope of Law 21,526 and its amendments, within the time limit set out in the preceding paragraph. In the case of natural persons or foreign nationals, for the purposes of this Article, standardisation shall be valid, even if the foreign currency, which is intended to be exteriorized, is recorded, registered or deposited in the name of the spouse. of the taxpayer or his ancestors or descendants in the first degree of consanguinity or affinity.

ARTICLE 5-The amount expressed in pesos of the foreign currency to be exteriorice shall not be subject to any special tax.

ARTICLE 6-The provisions of this Title shall include the foreign currency which shall be deposited in foreign banking or financial institutions subject to the supervision of the central banks or equivalent bodies of their institutions. countries, or in other entities that consolidate their accounting statements with the accounting statements of a local bank authorised to operate in the Argentine Republic.

ARTICLE 7 °-The enjoyment of the benefits provided for in this law shall be subject to the amount corresponding to the foreign currency-including the funds originated in the making of the goods referred to in the second paragraph of the Article 3 (3)-which is externalised, shall be affected by the acquisition of any of the financial instruments referred to in Title I.

ARTICLE 8 °-The persons referred to in Article 3 (3) who make foreign currency holdings in the form provided for in Article 4 (b) shall apply to the entities referred to in Article 6 in which they are deposited. the extension of a certificate stating that:

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(a) Identification of the external entity; (b) Surname and names or names and addresses of the holder of the deposit; (c) Amount of the deposit expressed in foreign currency; (d) Place and date of its establishment. The financial institutions receiving foreign currency holdings as provided for in Article 4 (b) shall extend a certificate stating: (a) Names and last names or names and addresses of the holder; Identification of the external entity; (c) Amount of transfer expressed in foreign currency; (d) Place and date of transfer.

ARTICLE 9 °-The subjects who carry out the externalization, in accordance with the provisions of this title, shall not be required to inform the Federal Administration of Public Revenue, without prejudice to compliance with Law 25.246 and other obligations they correspond, the date of purchase of the holdings or the origin of the funds with which they were acquired, and shall enjoy the following benefits: (a) They shall not be subject to the provisions of Article 18 (f) (f) of Law 11.683, which was ordered in 1998 and their amendments, with respect to the foreign holdings; (b) They shall be released from any civil, commercial and criminal tax action-with In law 23,771 and its amendments, during its validity, and the law 24.769 and its modifications-administrative, penal exchange-as laid down in law 19.359 (t.o. 1995) its amendments and regulations, except in the case of the alleged provided for in Article 1 (b) of that law-and professional which may correspond, the responsible for transgressions that are regulated under the rule of this law and those that have originated in those laws. In this situation, the managing partners and managers of persons, directors, managers, syndicates and members of the boards of directors of public limited companies and in comandità by shares and equivalent positions in this situation are included in this situation. cooperatives, trusts and mutual funds of investment, and certified professionals of the respective balance sheets. This benefit does not apply to actions which may be exercised by individuals who have been harmed by such transgressions; (c) They are exempted from the payment of the taxes which they would have omitted to declare, in accordance with the following provisions: 1. Eximition of the payment of Taxes to the Earnings, to the Transfer of the Infurniture of Physical Persons and the Incurrency Successions and on the Credits and Debts in Bank Accounts and Other Operatoria, in respect of the amount of the net taxable amount of the corresponding tax, the equivalent amount in pesos of foreign currency holding that would be externalized. 2. Eximition of Internal Taxes and Value Added. The amount of transactions released shall be obtained by multiplying the value in pesos of the externalized holdings, by the coefficient resulting from dividing the total amount of declared or registered operations in case of no declaration -for the amount of the gross utility, corresponding to the tax period to be released. 3. Eximition of Taxes to the Presumed Minimum Profit and on Personal Goods and the Special Contribution on the Capital of Cooperatives, in respect of the tax originated by the increase of taxable assets, of goods subject to tax or taxable capital, as the case may be, for an equivalent amount in pesos to the foreign holdings. 4. Eximition of the Income Tax on the net income not declared, in its equivalent in pesos, obtained abroad, corresponding to the holdings that are externalized. They shall also be exempt from the Tax on Credits and Debts in Bank Accounts and Other Operatoria, the taxable facts originating in the transfer of the foreign currency which

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exteriorice, as well as those which may correspond to the deposit and extraction of the respective bank accounts provided for in Articles 4 and 7 of this Law.

ARTICLE 10. -the externalization made by the companies referred to in Article 49 (b) of the Law on Income Tax, the text ordered in 1997 and its amendments, will free the income tax corresponding to the shareholders, in proportion to the taxable amount attributable to them, in accordance with their participation in the taxable matter. The individual natural persons and successive persons who carry out the ex-teriorisation provided for in this Title may release the tax obligations of the single-person undertakings or holdings, of which they are or would have been a holder.

ARTICLE 11. -The release provided for in Article 9 (c) shall not apply to the withholding or the perceptions which have been carried out and not entered.

ARTICLE 12. -For the purposes of this Title, the value of the foreign currency corresponding to the foreign currency, the type of buyer change of the Bank of the Argentine Nation, in force at the date of the respective externalization, shall be considered.

ARTICLE 13. -It will be a requirement for the usufruct of the benefits granted by the present that the taxpayers have complied with the filing and payment, at 31 May 2013, of the obligations of the Taxes to the Earnings, to the Presumed Minimum Profit and to the Tax on Personal Goods corresponding to the fiscal years ended until December 31, 2012, inclusive. The non-compliance with the foregoing will have the character of a resolutive condition. The property differences which the taxpayer is required to express in respect of this scheme shall be included in the affidavits for the tax period 2013.

TITLE III

General provisions

ARTICLE 14. -None of the provisions of this law shall free the financial institutions or other persons required, be they financial institutions, public notaries, accountants, syndicates, auditors, directors or others, of the obligations connected with the legislation aimed at the prevention of money laundering, terrorist financing, or other crimes provided for in non-tax laws, except for the figure of tax evasion or participation in tax evasion. Excluded from the scope of this law are the sums of money from conduct likely to be framed under the terms of Article 6 of Law 25,246 relating to the crime of laundering of assets and financing of terrorism. Natural or legal persons seeking access to the benefits of this scheme shall formalise the submission of an affidavit in this respect, without prejudice to any other measure necessary for the purposes of this Regulation. corroborate the ends of viability for the acceptance of the present. In the cases referred to in point (j) of Article 6 (1) of Law 25.246 (Offences of the Tax Criminal Law), the exclusion shall be from the measure that is imputed.

ARTICLE 15. -excluded from the provisions of this law, who are in any of the following situations:

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(a) State of bankruptcy, in respect of which there is no continuity of the holding, as laid down in laws 19.551 and its amendments, or 24.522 and its amendments, or 25.284, as appropriate; the former Ministry of Finance of the former Ministry of Economy and Production, or the Federal Administration of Public Revenue, which is based on laws 23,771 and its amendments, or 24.769 and, as appropriate, their modifications in respect of which they have been issued (c) formally or criminally filed for common offences, which have a connection with the non-compliance with their tax obligations or those of third parties, in respect of the of which a final judgment has been given prior to the date of entry into force of this law; (d) Those charged for offences linked to money laundering or terrorist financing operations, their spouses and relatives in the second degree of consanguinity or ascending or descending affinity; e) Legal persons -including cooperatives-where, as appropriate, their partners, administrators, directors, syndicates, members of the supervisory board, directors or those holding equivalent positions in the cooperatives have been formally denounced or (a) criminal proceedings under laws 23,771 and its amendments or 224,769 and its amendments or for common offences connected with the failure to comply with its tax obligations or those of third parties, in respect of which it has been (f) a final judgment delivered prior to the date of entry into force of this law; Those who exercise or have exercised the public function, their spouses and relatives in the second degree of consanguinity or ascending or descending affinity in reference exclusively to Title II, in any of the powers of the national State, provincial, municipal or the Autonomous City of Buenos Aires. Also, the persons who are engaged in the regime established by this law, must previously renounce the promotion of any judicial or administrative proceedings in relation to the provisions of Decree 1043 of April 30, 2003, or to claim for tax purposes the application of update procedures of any nature. Those who, at the date of entry into force of this law, have already promoted such processes shall desist from the actions and rights invoked therein. In the case of the waiver referred to in the preceding paragraph, the payment of the costs and the cost of the security shall be imposed in the order caused, renouncing the tax to the collection of fines.

ARTICLE 16. -The Federal Government of Pubic Revenue shall be exempt from making criminal charges in respect of the offences provided for in laws 23,771 and its amendments and 24.769 and its amendments, as appropriate, as well as the Central Bank of the Republic of Argentina for the purpose of substantiating the exchange of criminal charges and/or making a criminal complaint in respect of the offences provided for in law 19.359 (t.o. 1995) and its amendments-except in the case of the alleged provision in Article 1 (b) of (a) to the extent that the persons concerned adhere to the arrangements provided for in Title II of the Treaty; present law.

ARTICLE 17. -Suspend with a general character for the term of one (1) year the course of the prescription of the action to determine or to demand the payment of the taxes whose application, perception and supervision is in charge of the Federal Administration of Revenue Public and to apply fines in relation to them, as well as the expiration of the instance in the trials of tax execution or judicial remedies.

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ARTICLE 18. -The Federal Administration of Public Revenue shall regulate Title II of this Law and shall dictate the additional rules necessary for its implementation.

ARTICLE 19. -The Central Bank of the Republic of Argentina shall be the Application Authority in respect of the Certificates of Investment Deposit and shall dictate the relevant regulatory and complementary rules, including the procedure to be followed in the event of Loss or subtraction.

ARTICLE 20. -The national executive branch shall be empowered to extend the time limits provided for in this scheme.

ARTICLE 21. -The provisions of this law are of public order and shall enter into force on the day of their publication in the Official Gazette.

ARTICLE 22. -Contact the national executive branch.

GIVEN IN THE SESSION HALL OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, ON THE TWENTY-NINTH DAY OF MAY OF THE YEAR TWO THOUSAND THIRTEEN.

-REGISTERED UNDER NO 26,860-

BEATRIZ ROJKES OF ALPEROVICH. -JULIAN A. DOMINGUEZ. -Gervasio Bozzano. -Juan H. Estrada.

Date of publication: 03/06/2013

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