REGIME FOR THE DEVELOPMENT AND STRENGTHENING OF ARGENTINE SELF-PARTISM. BENEFITS AND INCENTIVES

Law 27263

Creation.

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

TITLE I

Creation of the Regime for the Development and Strengthening of the Argentine Self-Partism.

Benefits and incentives.

CHAPTER I

Definition and scope of the scheme

Article 1-The Development and Strengthening Regime of the Argentine Self-Partism Is Instituted, for which an electronic tax credit voucher can be granted to third parties for the payment of national taxes, in an amount equivalent to a percentage of the ex-works value of the national auto parts referred to in Article 4, net of value added tax (VAT), financial expenses, and discounts and bonuses.

Article 2-For the purposes of this scheme, the following definitions shall apply: by platform: a structural primary assembly carrying a load of an automotive vehicle, which determines the basic size of that vehicle and forms the structural base supporting the vehicle. motor train, and serves as a vehicle for joining the automotive vehicle in various types of frames, such as for body assembly, dimensional frame or unit body. By new platform: to a platform that initiates its production as a result of a relevant investment in fixed assets, redesign of processes and products, civil work and development of local suppliers, reaching an optimal scale of production or that is treated. In order for a production platform to be considered new it must involve a minimum investment of 50 million US dollars (U 50,000,000) in the cases of points (a), (b) and (c) of Article 4, and of 20 million dollars Article 4 (d) of Article 4 (d). Without prejudice to the foregoing, the implementing authority shall lay down the rules of procedure and the criteria which are necessary.

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By exclusive platform: that whose production is developed within the Common Market of the South (Mercosur), only in Argentina. For engines and transmission boxes: the goods included in the list to be drawn up by the implementing authority. By auto parts: the parts, parts, subassemblies, assemblies and systems that are part of the vehicle or self-benefit included in the list to which the implementing authority is drawn up for this purpose. By national auto parts: those that comply with the conditions laid down in Article 16 of this Law. By terminal undertakings: undertakings which produce the goods listed in points (a), (b), (c), (d), (e) and (f) of Article 4 of this Law. By self-partists: those undertakings which produce the goods listed in points (g), (h) and (i) of Article 4 of this Law and their parts and parts, irrespective of the destination of such goods. By components produced in house: those components that are produced directly by the terminal or self-partisan companies.

ARTICLE 3-The legal persons who manufacture the products referred to in points (a), (b), (c), (d), (e) and (f) of this Law, who have an industrial establishment situated in the Member State, may apply for membership of the scheme. national territory under law 21,932, or are registered in the records created by resolution 838 dated 11 November 1999 of the former Ministry of Industry, Commerce and Mining of the former Ministry of Economy, Works and Public services, their modifications and additions, without prejudice to the customs procedure to which they are subject that territory and/or the tax benefits of which the undertakings may be favoured, whether in municipal, provincial or national jurisdiction. In addition, the legal persons who manufacture the goods referred to in points (g), (h) and (i) of this Law may be required to join the scheme, irrespective of the destination of the goods, provided that they have been established. (a) industrial property located in the national territory, without prejudice to the customs procedure to which that territory is subject and/or to the tax benefits of which the undertakings may be favoured, either in municipal, provincial or national. For the purposes of the foregoing paragraph, the manufacturer must complete the provisions of resolution 838/99 of the former Secretariat of Industry, Commerce and Mining or be registered in the Industrial Register of the Nation, created by the Law 19,971.

CHAPTER II

Of the benefit

ARTICLE 4 °-Legal persons who adhere to the scheme shall obtain a benefit on the value of the national auto parts incorporated in their products, in accordance with the definitions contained in Article 16 of this Law. These local parts must be intended for the manufacture of the products defined in points (a), (b), (c), (d), (e) and (f) and/or production of parts as defined in points (g), (h) and (i) of this Article; (a) Cars; Utility of up to a thousand five hundred kilograms (1,500 kg) of load capacity; c) Light commercial of more than 1, 500 kg (1500 kg) and up to 5 thousand kilograms

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(5 000 kg) of load capacity; (d) Trucks, chassis with and without cab, and omnibus; (e) trailers and semi-trailers; (f) agricultural machinery and self-propelled vial; (g) internal combustion engines, hybrids or other; (h) Transmission boxes and components thereof; (i) Other auto parts systems, assemblies and sub-assemblies, which define the implementing authority.

Article 5 °-The implementing authority shall establish the goods subject to the benefit, drawing up a list with its corresponding tariff positions of the Common Market of the Common Market (NCM) and dictating the rules of clarification and/or (a) additional information deemed necessary for this purpose.

ARTICLE 6-The benefit provided for in Article 4 of this Regulation is also applicable to the purchase of new matrices manufactured in the country to stamp, funnel, punch or forge new moulds manufactured in the country for injection, compression or forged of metals, and for injection or compression of plastics or rubber, their specific use calibers and new tools for casting for the production of parts of the goods referred to in Article 4 of this Law and contemplating the technological changes that might exist.

ARTICLE 7 °-For the purposes of access to the arrangements provided for in Article 1 of this Law, undertakings producing the goods listed in points (a), (b), (c), (d), (e) and (f) of Article 4 (1) shall submit a request for accession in connection with the production of new exclusive platforms. This request must be approved by the implementing authority, which will take into account the impact of the incentive on investment decision, its export capacity, the impact on employment, the competitiveness of the "Value chain"-self-partisan value chain, the generation of national value added, the radication of new technologies and the scale of production, among other aspects that it considers relevant. In the case of non-new exclusive platforms, the companies referred to in the first paragraph may submit an application for membership in so far as they involve a significant redesign of the goods involved, for which they shall be deemed to be in addition to the volume of investments required, their impact on employment and must involve in all cases the increase in the participation of national auto parts, among other criteria defining the implementing authority for the purposes of the grant of the benefits established by the present. For new and non-new exclusive platforms and auto parts, the application for membership may be submitted for those which have started production during the three hundred and sixty-five (365) days prior to the approval of the present law.

ARTICLE 8-Companies producing the goods listed in points (g), (h) and (i) of Article 4 (1) of this Act shall submit, for approval by the implementing authority, an application for accession to the (a) New auto parts; (b) existing self-parts at the time of entry into the scheme involving an extension of production capacity. In the case of extensions, for approval, consideration will be given to the impact of the incentive on investment decision, its export capacity, the impact on competitiveness of the

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the company, the employment, the generation of national value added, its impact on the value chain, the radication of new technologies and the scale of production.

ARTICLE 9-Companies must submit, together with the application for membership of the scheme, the details of local suppliers, the local production pieces to be provided by each of them and the purchase volumes (in physical units and in value) foreseen during the project period. The commercial relationship between the recipient undertaking and its suppliers must be established by means of a reliable document setting out predictability patterns with regard to minimum purchase volumes provided for in the application of the benefit, inter alia aspects, and the implementing authority may lay down the additional and clarifying rules it considers relevant for this purpose.

ARTICLE 10. -the beneficiaries of this scheme, in addition to the requirements laid down by the implementing authority, must complete the following conditions: (a) to present in character of affidavit the amount of average monthly workers in relation of dependence, duly registered, as a special book provided for by Article 52 of the Law of Labor Contract 20.744, t.o. 1976 and their amendments, from the period from July 2015 to June 2016, including; (b) Submit an affidavit on the same terms in the month of December each year, assuming, in all cases, the written commitment and participation of the trade union association signatory of the collective bargaining agreement in force, of not reduce the number of staff by reference to the number of average monthly workers arising from the provisions of the previous subparagraph, or to apply suspensions without haber. The exceptions to the first subparagraph of this paragraph shall be assessed and authorized by a commission composed of one (1) representative of the implementing authority, one (1) representative of the Ministry of Labour, Employment and Social Security, one of the (1) representative of the business chambers of the sector and one (1) representative of the trade union organizations with trade unions. Failure to comply with this commitment will empower the enforcement authority to reject applications, suspend the benefit granted and/or rescind it. (c) In the case of new undertakings, it shall be the implementing authority which lays down the minimum staff required to enable access to the present arrangements.

ARTICLE 11. -The National Content (CN) corresponding to each of the goods reached by Article 4 ° of this Law, may not be less than the following in each case: (a), (b), (e), (f), (h) and (i): National Minimum Content (NMC) Thirty percent (30%). (c) and (d): National Minimum Content (NMC) of 25% (25%). (g) National Minimum Content (NMC) of 10% (10%) during the first three (3) years from the grant of the benefit, and 20% (20%) from that period. In the latter case, the implementing authority may derogate from the CMN as long as they correspond to non-existent motoring technologies at the date of approval of this law. The benefit should be applied according to the percentages set out in Article 13 using the CMN values defined in the exception as the start. In the case of projects involving new motoring technologies (hybrids, electric, hydrogen, etc.), the implementing authority may derogate from the NMC. Where the NMC is lower than that established, undertakings producing such goods may apply for the scheme to be accepted without receiving the benefit referred to in Article 4 of this Regulation.

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The law must be completed within a period of less than three (3) years in order to be able to access them. However, they may access the benefits associated with the acquisition of the tooling as provided for in Article 6 ° and Article 17 of this Law, constituting the corresponding guarantees for an amount equivalent to the benefits Until such time as the CMN referred to in the preceding paragraph is complied with. In the event of failure to reach the NMC within three (3) years, the implementing authority shall implement the guarantees referred to in the preceding subparagraph, without prejudice to other penalties which may be appropriate.

ARTICLE 12. -The National Content (CN) of the goods included in Article 4 must be calculated in accordance with the following points: (a) The calculation formula used shall be as follows:

The value of the national auto parts acquired will be the ex-works value of the auto parts, net of the value added tax (VAT), financial expenses, and discounts and bonuses, which will arise from the respective billing vouchers authorized by the Federal Administration of Public Revenue (AFIP). The value of the national auto parts produced in house shall be the value arising from the industrial cost, in accordance with the criteria to be determined by the implementing authority for its calculation. (b) the beneficiary producers of the goods corresponding to the points (a), (b), (c), (d), (e) and (f) which demonstrate the development of independent local suppliers and their internationalisation, demonstrating that the products of origin the national that they provide is marketed in significant volumes to third countries, for each productive platform, they will be able to request an increase of up to five percentage points (5 p.p.) on the CN that arises from the previous paragraph, from the established CMN. The implementing authority shall approve such a request and shall regulate the scope and the corresponding scales according to the ratio between sales to the domestic market of the supplier concerned and those made to third countries. In addition, producers of the goods corresponding to points (g), (h) and (i) of Article 4 (g) may apply for the same benefit provided for in the preceding point where the goods are placed on the market in significant volumes to third parties. countries and are part of a process of internationalisation of self-partisan companies. The implementing authority shall approve such a request and shall regulate the scope and the corresponding scales according to the ratio between sales to the internal market and those made to third countries.

ARTICLE 13. -The benefit set out in article 4 ° of this law consists in obtaining an electronic tax credit voucher, which may be transferred to third parties for the payment of national taxes, in an amount equivalent to a percentage of the ex-value factory of the national auto parts referred to in Article 4 °, net of value added tax (VAT), financial expenses, and discounts and bonuses. This percentage shall be between 4% (4%) and 15% (15%), depending on the National Content of the goods referred to in Article 4 °, according to the following table:

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* Only during the first three (3) years since the regulations of this Regime according to Article 11. In the case of the benefit on the goods referred to in Article 6, the percentage established shall be eight per cent (8%), applicable only on the ex-works value of the goods, net of the value added tax (VAT), financial expenditure, discounts and bonuses.

ARTICLE 14. -without prejudice to Article 13, the acquisition of forged or non-ferrous metal parts, both for incorporation into the vehicle and those for the production in house of auto parts, shall receive a benefit 7% (7%), provided that they comply with the national product condition set out in points b.1 and b.2 of Article 16, applicable on the ex-works value of such goods, net of value added tax (VAT), expenditure financial, discounts and bonuses.

ARTICLE 15. -The benefits indicated above will arise from the respective billing vouchers authorized by the Federal Administration of Public Revenue (AFIP) and will be effective from the date of the start of the production program approved by the Federal Government of the implementing authority. In the case of production in house subject to the benefit, it shall be payable on the industrial cost value, in accordance with the value referred to in Article 12. The implementing authority may authorise the benefit to be defined in respect of

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Article 6 ° starts to be computed for purchase invoices made from 1 January 2016 at a time of no more than 24 months in advance of the date of commencement of the approved production programme. The implementing authority shall define in each case the need to provide guarantees for such benefit.

ARTICLE 16. -For the purposes of granting the benefits provided for in Title I of this Law, they shall be considered as auto parts, tooling, matrices and national moulds: (a) Systems, assemblies and subassemblies having a National Content (CN) less than 30% (30%), calculated in accordance with the formula laid down in Article 12. The implementing authority shall have the power to reduce the percentage by way of derogation to 10% (10%) in cases involving the case of non-existent products as an original equipment, or by their own Technological and supply characteristics require a different rule than that laid down in Article 13. Such reduction may be granted for a maximum period of five (5) years within the term of this law and, in no case shall the systems of auto parts, assemblies and subassemblies involved have a National Extended Content (ANC) less than 30% (30%), calculated according to the following formula:

(b) Parts and parts, where: b.1 Only raw materials or national inputs are used in the production process; b.2. In their manufacture, in any proportion, raw materials or imported inputs are used, provided that they are subjected to manufacturing, manufacturing or industrial processing processes which involve a transformation which confers upon them a new individuality, characterized by the fact that they are classified in a tariff heading-first four (4) digits of the Common Market of the Common Market (NCM)-different from that of the aforementioned raw materials or inputs; or, b.3. In their manufacture, they are used in any proportion, raw materials or imported inputs and the requirement set out in the previous paragraph cannot be fulfilled, provided that the National Content (CN) does not fall below 30% (30%), calculated in accordance with the formula laid down in Article 12. (c) Parts, parts, systems, assemblies and subassemblies that are produced in the province of Tierra del Fuego, Antarctica and the South Atlantic Islands and comply with the requirements laid down in law 19,640, its modifications and complementary; The tooling referred to in Article 6 °, constructed in the country for the manufacture of parts and parts of the final goods subject to the project, shall be considered of national origin whatever the origin of its material. constitutive.

ARTICLE 17. -the goods referred to in Article 6, where they are of imported origin and are associated with the production programmes approved by the implementing authority, shall be subject to an import law of Extrazone (D.I.E.) equivalent to zero per cent (0%) as long as the sum of its value does not exceed 50% (50%) to that of the locally acquired or produced domestic goods, irrespective of the end user of the goods. To this end, the beneficiary companies may compute as local acquisitions those transactions whose date of invoice and corresponding accounting records are after 1 January 2016. Where the value of the imports exceeds the percentage referred to in the preceding subparagraph, they may also benefit from the benefit established, and the corresponding supply must be completed

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within a period of less than eighteen (18) months, counted from the date of entry of the goods into Customs. During that period, they shall provide guarantees for the amount of the benefit.

ARTICLE 18. -the beneficiaries of this law may apply in advance for up to 15% (15%) of the total benefit provided for during the first five (5) years of the approved production programme, with the same, unique and exclusively, to the development of suppliers. Suppliers will be obliged to apply the resources transferred by the beneficiaries exclusively to herramales, investment in capital goods and facilities for the expansion of productive capacity, among other technological actions which allow the same to be adapted to the provision needs. It is expressly excluded from the above, technical advice and intangible assets. The aforementioned resources must be transferred by the beneficiaries to the self-partists without costs and their recovery by the beneficiary will be pari passu to the return that the beneficiary makes to the national state. This refund will be made by bringing in each benefit request for the purchase of auto parts a percentage equal to the percentage of the benefit that you have requested in advance. The property of the beneficiaries, which are transferred to the self-partists, may also be considered as an integral part of the advance of the total profit provided for in this Article. The applicant company must provide guarantees for the entire advance. The vendor development programs framed in this article, as well as the application and cancellation of the benefits involved, must have the express approval of the implementing authority, who will evaluate the relevance of implement the advance mentioned in the first paragraph, considering the financing alternatives that may exist.

ARTICLE 19. -The electronic bonds of tax credit issued in the framework of this law may be applied for the payment of all the amounts to be paid in tax to the profits tax, tax on the presumed minimum profit, tax to the value (VAT) and internal taxes, in the form of a balance of affidavit and advances, and may also be applied, in the case of imports, for payment on account of domestic taxes, profits and added value (IVA), its holds and perceptions, the collection of which is in charge of the Federal Administration of Public Revenue (AFIP), an autarchic entity acting in the field of the Ministry of Finance and Public Finance. The electronic tax credit voucher may not be used to cancel debts prior to the actual incorporation of the beneficiary under this law or for the cancellation of tax obligations arising from the substitute liability. or a liability of the taxpayer for third-party debts, or for his/her performance as a withholding agent or a collection agent. In no case, any balances in your favor will result in reintegration or returns by the national state.

ARTICLE 20. -where the benefit has been applied for in respect of a self-part and is in turn used in the manufacture of another benefit which is liable for the benefit, for the purposes of calculating the amount of the second benefit, the value of that benefit must be self-part. However, it will be taken into account when the requirements for integration are weighted.

ARTICLE 21. -It is fixed in ten (10) years, from the date on which the rules of the established regime are dictated, the time limit for the companies concerned to be able to request their incorporation, being able to receive benefits for the duration of their project.

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However, applications made after the first five (5) years of validity may in no case be subject to the benefits provided for by this law for an additional period of two (2) years, with the deadline set at the previous paragraph.

TITLE II

Sanctioning regime

ARTICLE 22. -Failure to comply with the provisions of this law shall give rise to the application of the following penalties, without prejudice to those which may correspond to the application of criminal law: (a) Suspension of the benefit for a period of between two (2) months and one (1) year; (b) Fine, the amount of which may not exceed 50% (50%) of the total amount received; (c) Revocation of the benefit granted; (d) Payment of the taxes entered, plus their interest and accessories; e) Return on the electronic tax credit bonus, if not applied; f) Disablement to enjoy the benefits of the scheme.

ARTICLE 23. -It shall be considered to be a minor fault, the delay in the submission of the required information or its omission, in so far as it has not been motivated by the national State.

ARTICLE 24. -They shall be considered as serious misconduct: (a) the omission of the submission of the information required to the extent that the information is motivated by the national State; (b) the untruth in the declaration of content, in so far as it implies that a company is unduly enjoying any of the benefits of the scheme.

ARTICLE 25. -In the light of a minor fault, the implementing authority may, after notification of the duty in question and the discharge concerned, apply the penalties provided for in Article 22 (a) and (b) of this Law. Such a sanction may be made jointly or alternatively, not being the amount of the fine provided for in Article 20 (b) of this law, exceeding 20% (20%) of the total amount received by the beneficiary in the year immediately preceding calendar. The graduation of the same shall be done according to the amount of the benefit and the antecedents in the completion of the scheme of the undertaking in question,

ARTICLE 26. -in the event of a serious misconduct, determined on the basis of a summary which respects the due right of defence of the party concerned, the implementing authority may, in a joint or alternative manner, apply the penalties provided for in points (b), (c), (d), (e) and (f) of Article 22 of this Law. The graduation of the same will be done according to the amount of the benefit and the antecedents in the performance of the regime of the company in question.

ARTICLE 27. -The implementing authority shall give the administrative procedure governing the instruction of the summary referred to in this Title.

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TITLE III

Final provisions

ARTICLE 28. -The Secretariat of Industry and Services, a body dependent on the Ministry of Production, is designated as the enforcement authority of this law with powers to lay down regulatory, clarifying and complementary rules.

ARTICLE 29. -The cost incurred by the verification and comptroller activities of the operation of the scheme established by this law shall be borne by the respective beneficiaries, by payment of a remuneration equal to the amount arising from the apply a percentage on the amount of the agreed benefits. The implementing authority shall be empowered to fix the percentage referred to in the preceding paragraph and to determine the procedure for its payment. The funds to be collected for the payment of the remuneration laid down in this Article shall be affected, exclusively, to the tasks referred to in the first subparagraph of this Article, the execution of the tasks referred to in the first subparagraph This article does not prevent the exercise of the powers that are of its own to the Federal Administration of Public Revenue (AFIP), an autarchic entity acting in the field of the Ministry of Finance and Public Finance.

ARTICLE 30. -The Consultative Council of the present regime is hereby established with the following characteristics: The Council shall be composed of two (2) representatives, one institutional and one technical, of the Ministry of Production, of the Ministry of Finance and Public Finance of the Ministry of Labour, Employment and Social Security, business chambers of the sector and trade union organizations with trade unions. It shall also be integrated by an (1) representative or institutional authority and a (1) technical representative of the provinces in whose territory at least one (1) industrial establishment of the terminal undertakings is situated. The Presidency of the Advisory Council shall be chaired by the representative of the Ministry of Production.

ARTICLE 31. -the Advisory Council shall have the functions and powers to be laid down by the implementing authority in the rules governing the application of the rules, including, inter alia, the following: analysis and monitoring of production programmes In the case of applications for accession to the scheme, treatment of specific situations which may arise in this framework, changes in the system in terms of production, technological, economic impact, both in the short and medium and long term. period. The Council shall meet at least once a quarter.

ARTICLE 32. -The Chief of the Cabinet of Ministers is empowered to reallocate the necessary budgetary appropriations in order to comply with the provisions of this Law, during the first year of validity. From the second year of the present regime, the total fiscal quota of the promotional benefits to be allocated shall be set annually in the respective general budget law of the national administration; in which it shall be included, where appropriate, the fiscal quota balances associated with pending completion projects, in accordance with the schedule for the development of the production agreed between the beneficiaries and the implementing authority.

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ARTICLE 33. -Companies that have production programs approved under Law 26.393, enacted on July 4, 2008, regardless of the effective collection of the benefits that it establishes, may request incorporation into the present (a) to give a formal and definitive statement of the benefits established by law 26.393; (b) To credit that the start of production of the approved programmes has been during the two (2) years preceding the approval of this law.

ARTICLE 34. -Invite the provinces, the Autonomous City of Buenos Aires and the municipalities to adhere to the present promotion regime by extending the electronic bonds of tax credit, which may be transferred to third parties, for the payment of taxes provincial and/or municipal fees.

ARTICLE 35. -This law shall enter into force on the day following that of its publication in the Official Gazette.

ARTICLE 36. -Contact the national executive branch.

GIVEN IN THE SESSION HALL OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, AT THE THIRTEEN DAYS OF JULY OF THE YEAR TWO THOUSAND SIXTEEN.

-REGISTERED UNDER NO 27263-

MARTA G. MICHELETTI. -PATRICIA GIMENEZ. -Eugenio Inchausti. -Juan P. Tunessi.

Date of publication: 01/08/2016

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