LAW NO. 20,675 AMENDS THE LAW ON DONATIONS FOR CULTURAL PURPOSES, CONTAINED IN ARTICLE 8 OF LAW NO. 18,985 Having regard to the fact that the H. National Congress has given its approval to the following Bill: " Single article. Article 8 of Law No. 18,985, as follows: " Article 8 °.-Approve the following text of the Law on Donations with Cultural Fines: TITLE I Definitions Article 1.-Definitions. For the purposes of this law: 1. Beneficiaries: to state and private universities and professional institutes recognized by the State, to libraries open to the general public or to the entities that administer them, to corporations and foundations or entities without for profit, to the functional community organizations formed in accordance with Law No. 19,418, which establishes rules on the boards of neighbors and other community organizations, and to organizations of public interest governed by law No. 20.500, the object of which is the research, development and dissemination of culture and art. State and municipal museums may be beneficiaries, as well as private museums that are open to the general public and whenever they are owned and managed by non-profit entities or legal entities. The National Monuments Council and the Directorate of Libraries, Archives and Museums will also be beneficiaries. In addition, owners of buildings that have been declared a National Monument, in their various categories, according to law No. 17.288, on National Monuments, whether public or private, and the owners of the property, will be beneficiaries. historical conservation buildings, recognized in the General Law of Urbanism and Constructions and in the respective Ordinance. In the same way, property owners who are located in areas, sectors or sites published on the World Heritage List, which is prepared by the World Heritage Committee of the Organization of the Nations, will be beneficiaries. United for Education, Science and Culture. Also beneficiaries may be the non-profit corporations and foundations, the functional community organizations incorporated under Law No. 19,418, the public interest organizations regulated by law No. 20,500, the municipalities and other bodies of the State administering national public goods, in cases where the project is intended to restore and preserve typical areas and areas of historical conservation. The provisions of the preceding paragraphs shall be without prejudice to the provisions of Article 4 of Law No 19,896, which lays down Rules on Budgetary and Personnel Management, where appropriate. 2. Donors: to the taxpayers who, according to the provisions of the Law on Income Tax, declare their effective income according to complete accounting, and are taxed according to the rules of the tax of the first category, as well as those of which are affected by the complementary and single second category global taxes, which make donations to the beneficiaries according to the rules of this law. Taxpayers shall also be considered as donors to the additional tax of the Law on Income Tax, which is required to declare annually their income and the shareholders referred to in Article 58 of that Law, and those of the tax on the appropriations for the death of law No. 16,271, on inheritance tax, allowances and donations. They shall not be entitled to tax benefit to the donor, when they are State enterprises, or those in which the State, its agencies or companies and the municipalities have a participation or interest of more than 50% of the capital. 3. Qualifier Committee for Private Donations: to the Committee that will be composed of the Minister President of the National Council of Culture and the Arts or his representative, by a representative of the Minister of Finance, by a representative of the Senate appointed by a representative of the Chamber of Deputies appointed by two thirds of the members of the sitting, by a representative of the Confederation of Production and Trade, by a representative of the Chamber of Deputies, representatives of cultural, artistic, urban and architectural organisations and heritage, and by a natural person who has been awarded the National Prize for Plastic Arts, Music Arts, Representation Arts or Literature. In the case of the representative of the Senate and the Chamber of Deputies, the appointment will be four years, with no need for such representatives to be present in the current office. The Private Donations Committee, hereinafter the "Committee", will be chaired by the Minister President of the National Council of Culture and the Arts or its representative, who will have a vote in the event of a tie. The Committee may delegate its functions to Regional Committees. 4. Project: the plan or program of specific cultural or artistic activities that the beneficiaries intend to carry out within a certain time. The project may refer to all the activities that the beneficiaries will develop in that period, in which case it will be called the General Project, or only some or some of them, taking the name of Project Particular. 5. Regulation: the regulation issued by the Ministry of Education, on a proposal from the National Council for Culture and the Arts, and also signed by the Minister of Finance, which will contain the rules for the execution of the provisions of this law. 6. Absolute global limit for donations: the one for each case points to Article 10, of Law No. 19,885, which encourages and rules the good use of donations that give rise to tax benefits and extends them to other social and public ends. TITLE II Of the tax benefits for the donations of this law made by certain taxpayers of the Law on Income Tax. 1st of this law. The aforementioned taxpayers, who make donations in the form provided by this law, will be entitled to a credit equivalent to 50% of the amount of such donations, which will be charged against the taxes corresponding to the financial year or period in which the donation is actually made. This appropriation shall be subject to the limits laid down in this law and those which shall be determined in each case by application of the absolute total limit for donations, and may be used only if the donation is included in the tax base of the taxes corresponding to the income of the year or period in which the donation was made materially. The donations made by the taxpayers referred to in this Title, in the part entitled to the credit, will be adjusted in the form established for the mandatory provisional payments of the Law on Income Tax, to be counted from the the date on which the actual disbursement is incurred. Article 3.-Rules applicable to taxpayers of the first category tax that declare their effective income according to complete accounting. These taxpayers will apply the following limits as to the sums they can donate for the purposes of this law and the credit they may apply: 1. Limit the amount of donations. The amount of the donations which the taxpayers in question may carry out for the purposes of this law may not exceed, at their choice, the absolute total limit referred to in Article 1 (6), or a comma six per a thousand of the company's own capital at the end of the corresponding financial year, determined in accordance with the provisions of Article 41 of the Law on Income Tax. In case of opting for the latter limit, taxpayers may make donations even when they have tax losses in the financial year. 2. Limit to the amount of the applicable credit. The credit referred to in Article 2, for the taxpayers referred to in this Article, shall not exceed, in each financial year, 2% of the taxable amount of the taxable income, and shall not exceed 20 000 units. monthly taxes in the respective commercial year, depending on the value of the year at the end of the year. The credit referred to in Article 2, which is charged against the first class tax, shall be applied in advance of any other claim. If, after that, an excess is found, the excess shall not be returned or be charged to any other tax. The effective disbursements made by the taxpayer and entitled to the credit indicated shall be adjusted in the form established for the mandatory provisional payments of the Law on Income Tax to be counted from the date on which the tax was incurred. in the cash disbursement, and shall not constitute a necessary expenditure to produce the income, but shall not be subject to the provisions of Article 21 of that law. The part of the donation which cannot be imputed as a credit, may be reduced as expenditure up to the amount of the taxable income of the financial year in which the donation was made, determined in accordance with Articles 29 to 33 of the Law on Tax a la Renta. The excess may be deducted as expenditure in the same form, also up to the amount of the taxable income, adjusted in accordance with the provisions of Article 31, number 3 of the said law, until in the two financial years following that in which the made the donation. The balance not reduced in this way shall not be accepted as expenditure but shall not be affected by the provisions of Article 21 of the same legal text. Article 4.-Rules concerning the taxpayers of the supplementary global tax. In the case of these taxpayers, the credit referred to in Article 2 shall be charged following any other claim. If, after that, an excess is found, the excess shall not be returned or be charged to any other tax. For the purposes of this law, it will apply to donations made by these taxpayers, the absolute total limit referred to in Article 1 (6). Article 5.-Rules relating to the taxpayers of the second tax category. Taxpayers in the second category tax will be able to make donations under this law, either directly or through payroll discounts agreed with their employers. In both cases, the employer shall make the imputation of the credit referred to in Article 2 against the withholding of the tax corresponding to the month in which the donation is made, following any other credit. The credit to be charged in each payment period shall not exceed the equivalent of 13 monthly tax units according to their value at the date of payment. Where donations have been made directly by the taxpayers of this tax, they must inform and prove to their employer the fact that they have made the donation, within the same period of payment of the remuneration, in the form that Point out the Internal Revenue Service by resolution. Where the taxpayer has not availed itself in due time of the foregoing paragraph, or where the total annual credit exceeds the appropriations charged during the financial year, it may carry out an annual reliquidation of the taxes withheld. during the year, applying the scale of the fees resulting in annual values, according to the tax unit of December, and the appropriations and other elements of calculation of the tax, in which the balance of credit that has not been deducted shall be charged during that financial year. Where, on the basis of the annual relief and imputation, it is determined that the deductions made during the financial year were excessive, the taxpayer may ask for repayment up to the amount of such excess, duly adjusted in the Article 97 of the Law on Income Tax is established in the third indent of Article 97 of the Law on Income Tax. In no case shall the credit for donations of the financial year in that part of it exceed the withholding tax be repaid, nor shall it be entitled to its charge against any tax. For the purposes of the reliquidations indicated, the amount of the donations, the amount of the single tax of the second category determined, as well as the deductions made and the income affected to that tax, shall be adjusted in accordance with the Article 54, No. 3, second indent, of the Law on Income Tax, and the sums retained by single second category tax shall have the quality of provisional payments of those referred to in Article 95 of the law indicated. The taxpayers of the second category tax who also obtain other income from those referred to in Article 54 of the Law on Income Tax, may apply the absolute total limit for donations considering the the total gross income referred to in that provision. In this case, the total annual credit against the supplementary global tax to be determined shall be reduced, duly adjusted, to that which has been imputed in the form referred to above, against the single second-rate tax in the period respective. Article 6.-Rules concerning the taxpayers of the additional tax. The taxpayers of the additional tax who are required to declare such a tax annually and the shareholders referred to in Article 58 (2) of the Law on Income Tax shall be entitled to a tax credit which is serious for their income affected to the said tax, equivalent to 35% of the amount of the amount of the donation, adjusted in the same way as provided for in the final indent, and for the credits to which the taxpayer is entitled for the same income, to the extent in which such claims are to be considered as forming part of the tax base of that tax. This appropriation shall only be made in respect of donations in cash, which are made in the respective commercial year. The appropriation in this article shall not form part of the taxable amount of the additional tax and shall replace other tax credits of the taxpayer by way of income from the tax, which for the purposes of the calculation of the credit shall be increased by the replaced credits, up to an amount equal to the corresponding amount determined according to the preceding paragraph. The credits replaced by the credit provided for in this article will not entitle you to refund or imputation to any tax. The credit determined in the form indicated, with the corresponding retention fee, may be charged against the withholding tax, for which the donor must submit the copy of the corresponding certificate according to the instructions that the Internal Revenue Service will dictate to the respective retaining agent. If no such claim is made, the taxpayers referred to in Article 14 (A) (3) (c) of the Income Tax Act shall be entitled to apply for the refund of the tax withheld in excess of the provisions of the Article 126 of the Tax Code, which for these purposes shall be adjusted according to the percentage of variation of the Consumer Price Index between the month before the retention and the month before the resolution ordering its return. In the case of taxpayers who are required to make an annual income tax return in respect of this article, the amount of the credit calculated in accordance with the first subparagraph shall be deducted from the tax determined in that declaration, adjusted according to the percentage of variation of the Consumer Price Index between the month before the donation and the month before the end of the year. These taxpayers, when they have not imputed the provisional credit in accordance with the preceding paragraph, may do so only in the said annual declaration. The total amount of credit which these taxpayers may charge in the financial year may not exceed 2% of the annual taxable income, and may not exceed 20,000 monthly tax units. At the time of the respective retention, a claim of more than 2% of the base on which it is to be applied may not be charged, or of the equivalent of 1,667 monthly tax units, if the latter sum is less than that percentage. Where the credit is not imputed at the time of the holding or where the total annual credit exceeds the amount of the charge during the financial year, the difference shall be imputed only by the presentation of the annual declaration which establishes Article 65 of the Law on Income Tax, even if it is not obliged to present it. In such a declaration, where appropriate, the refund of sums withheld during the financial year concerned may be requested, duly adjusted in the manner laid down in Article 97 (3) of the Law on Tax on the Income. In no case shall the credit for donations of the financial year in that part of the year in excess of the withholding tax be repaid, which may be charged only to differences in the additional tax to be determined on the basis of that annual declaration. The amount of the donations, the amount of the additional tax determined, as well as the deductions made and the income affected to that tax, will be adjusted in accordance with Article 54, No. 3, second, of the Law on Tax to the Income, and the amounts withheld by additional tax shall be of the quality of interim payments referred to in Article 95 of that law. TITLE III Of tax benefits related to tax on allowances for the cause of death Article 7.-Rules relating to credit against tax on allowances for death. Natural donors who make donations in money or in species in accordance with this law, will be entitled to 50% of the amount donated can be charged as a credit to the payment of the tax to the allowances due to the death of the Law No. 16.271, on inheritance tax, allowances and donations, which is serious to the heirs or legacies of the donor at the time of his death, regardless of the time that has elapsed between the donation and the death. For the purposes above, the donor must ask the Internal Revenue Service for a certificate stating: (a) the existence of the tax credit; (b) its amount, expressed in units of promotion according to its value at the date of issue of the (c) the individualisation of the donor, and (d) the finding that the payment of the inheritance tax may be charged after the death of the donor. This certificate shall allow the credit to be charged by the heirs or legal persons. The appropriation provided for in this paragraph shall not be part of the appropriations entered in accordance with that law and shall be distributed to the heirs or legal persons in proportion to the liquid value of their respective allocations in respect of the mass of goods, a (a) the rate of deduction of the amount of the tax paid by the Member State of the State in which the tax is paid. They shall also give the right to the credit indicated in the preceding points, donations in money or in species of the hereditary mass of goods, effected by hereditary succession and which are intended for the purposes indicated in this law, provided that they occur within three years after the death of the deceased. For this, the representative of the estate must ask the Internal Revenue Service for a certificate stating: (a) the existence of the tax credit; (b) its amount, expressed in units of promotion according to its value at the date of issue of the (c) the individualisation of the deceased and his successors, and (d) the finding that, without a time limit, the payment of the tax on hereditary allowances may be charged to the heirs and the legatees who are part of the succession corresponds to pay. The claim against the tax on death allowances shall not exceed 40% of the tax which would have been payable to each individual subject prior to the grant. In order to obtain the certificate attesting to the existence of the credit, the donors must present to the Internal Revenue Service the certificate that the beneficiary gives to the Service of Internal Revenue, giving account of the donation made, in accordance with the number 2) of the following Article. The credit referred to in this Article shall be charged following any other credit, and if, after that, an excess is incurred, it shall not be returned or charged. Donations made in accordance with this Article shall not be eligible for the tax benefits provided for in the preceding articles. TITLE IV Requirements and conditions to be met by both donations and beneficiaries of the same Article 8.-Requirements to be met by donations. Donations which satisfy the following requirements shall be eligible only for the benefits provided for in the preceding Articles: 1. Having been made to one of the beneficiaries described in Article 1 (1), for the purposes of this donated to a given project, duly approved in accordance with the provisions of the following Article. 2. That the beneficiary has realized that he has received the donation by means of a certificate that will be extended to the donor, in accordance with the specifications and formalities indicated by the Internal Revenue Service. 3. That the benefits made by the donor or third parties related or contracted by the donor, in favor of the donor, have a value that does not exceed 10% of the amount donated, without application of the maximum ceiling of 15 monthly tax units in the year, established in the second indent of Article 11 of Law No. 19,885. Article 9-Requirements to be met by beneficiaries. They shall be entitled to receive donations with the effects prescribed in Articles 2 to 7, 13, 14 and 18 of this Law, the beneficiaries who comply with the following conditions: 1. Present a project to the Committee for Private Cultural Donations for research, creation and dissemination of culture, arts and heritage, such as infrastructure construction or enablement including the heritage, painting exhibitions, photography, sculpture, plays, music, dance, book editions, audiovisual productions, seminars, lectures, conferences, training workshops and in general any activities related to the character of the cultural or heritage is approved by the Committee. Projects in respect of which their beneficiaries are the municipalities or other bodies of the State which administer national public goods in typical or historic areas, or owners of buildings declared National Monument, in any of the categories referred to in law No 17.288, or owners of buildings located in areas, sectors or sites published on the World Heritage List that the World Heritage Committee the United Nations Educational, Scientific and Cultural Organization, or real estate located in historical conservation areas, referred to in Article 60 of the General Law of Urbanism and Constructions, whether public or private, may only be intended for conservation, maintenance, repair, restoration or reconstruction of these monuments. The Committee shall disclose and promote among donors those approved projects in force whose implementation is carried out in communes of limited resources. The Committee will also prioritize the analysis and approval of projects that contemplate the realization of cultural activities in these communes. 2. To be approved by the Committee, in accordance with the rules laid down in the Regulation. In the case of conservation, maintenance, repair, restoration and reconstruction projects of National Monuments, in any of its categories, they will have to have a report of the Council of National Monuments, elevated to the consideration of the Committee for approval. The beneficiaries must, in the execution of their projects, comply fully with the labour regulations, in particular those contained in the Book I, Title II, Articles 145 A et seq. of the Labour Code. They shall also observe the laws Nos 17.336 and 20.243 in whatever is relevant, and display as determined by the Committee, the current state of compliance with the obligations and duties arising from the rules mentioned. 3. The project may also cover the purchase of goods permanently intended for the performance of the beneficiary's activities, specific expenditure for certain activities or for the operation of the institution. beneficiary. Movable property acquired, created or produced with donations received for a project may not be completed but after two years since its acquisition. The buildings can only be disposed of after five years. The product of the disposal of each other can only be used for other projects of the beneficiary. In the case of immovable property, the money obtained by its disposal shall be used for the acquisition of another or other real estate which must be permanently assigned to the activities of the beneficiary. These buildings will also be subject to the rules of this number. In public writings where the acquisition of real or partially paid real estate is recorded with resources from donations received under this law, this circumstance must be expressed. 4. Projects shall contain a detailed explanation of the activities and the acquisitions and expenses they require. The Regulation shall determine the information to be contained in each project, the approval of which is requested from the Committee. 5. Projects should be open to the general public. Without prejudice to this, the Committee may determine, in the light of the nature of the project and the amount of funding provided for this law, the cultural remuneration to the community, in accordance with the criteria laid down in the Rules of Procedure. 6. Projects may consider a maximum duration of execution of three years from the date the beneficiary gives the Committee. That date shall be borne and informed by the beneficiary within 12 months of the approval of the project carried out by the Committee. Article 10.-Of cultural retribution. The cultural remuneration to the community in question 5) of the preceding Article may consist of: a. In the case of shows or exhibitions: perform free functions or exhibitions and/or the provision of the price reduction of the tickets in a given percentage. In any case, it must be ensured that the free cultural pay to the community is equivalent to 30% of the goods, services or benefits generated by the project. In the case of projects relating to shows which are financed in full by donations under this law, the remuneration shall consist of 30% of the entries at least 30% of the value of the general public, A distinction must be made between shows of creation and the season of premieres, in which a minimum of functions must be guaranteed in the case and the projects for the presentation and circulation of spectacles, in which a minimum of functions. b. In the case of publication of books: to allocate a percentage of the copies to be donated to public libraries, to educational establishments that receive contributions from the State or to other non-profit entities, according to the entities the recipients of cultural pay. Also, in cases where these projects refer to books in support or digital format, the remuneration will be determined according to the amount or percentage of free downloads or licenses that the beneficiary will have to grant, in accordance with the Point out the Regulation. c. In the case of audiovisual projects: to give a free authorization to the National Council of Culture and the Arts, for the public exhibition of the work in the national territory. Such an exhibition may not, in any event, prejudice the marketing period of the audiovisual project. Therefore, without prejudice to the ranges and criteria which, according to the Regulation, the Committee considers in applying the remuneration, such authorisation may not be exercised before the five years following the first act of marketing of the work. d. In the case of buildings declared national monument, buildings or heritage buildings: to put a distinctive plaque and allow free admission of the public on certain occasions and for a defined period. The Regulation shall lay down the criteria relating to the number of days, percentages of percentages and other parameters to be determined in order to regulate the way in which the beneficiary will give cultural benefits to the community in accordance with the provided in this law. Article 11.-Information for the tax authority and sanctions. The Committee shall send the Internal Revenue Service before 31 January of each year in the form determined by the Committee, a list of the beneficiaries and the projects approved in the previous calendar year. Beneficiaries must prepare annually a state of the sources and detailed use of the resources received in each project, which must be summarized in a general state. The Regulation shall determine the information to be included in those States and the manner of keeping the accounts of the beneficiary for these purposes. In addition, they must prepare annually a report of the state of the income from the donations and the detailed use of these resources, according to the contents established by the Internal Revenue Service, which must be sent to you. to that Service in the form and time limit which it points out by resolution. If the beneficiary does not comply with the above paragraph, it shall be sanctioned in the manner prescribed in Article 97 (2) of the Tax Code. The administrators or representatives of the beneficiary shall be jointly and severally liable for the fines to be imposed by application of this paragraph. Article 12.-Information for the Committee and sanctions. Each year, the beneficiaries shall report to the Committee, before 31 December, on the progress of the projects approved and the outcome of their implementation. Without prejudice to this, the Committee shall ask the beneficiaries for the information it deems necessary to verify compliance with the cultural remuneration to be determined by the Committee and other conditions laid down in the relevant Committee. project. The beneficiaries shall also submit to the Committee a sworn statement informing the contracts they have concluded on the basis of the implementation of the project, identifying the contracting parties and the total price agreed in each of the contracts, where appropriate. Similarly, they shall annually draw up a report on the status of revenue from donations and the detailed use of such resources, and submit such information to the Committee. The information referred to above shall be submitted to the Committee within the month following the end of the financial year concerned. For its part, the Committee shall keep up to date the information of the projects approved, the amount of donations, the state of progress, the results of the projects and the fulfilment of the cultural rewards to be determined by the Committee. The National Council for Culture and the Arts may, by means of a resolution founded and after the Committee's report, declare that the terms and conditions of the corresponding project are not met, if the information or background required in accordance with the provisions of the first subparagraph, do not force them to be satisfied within the time limits specified in the respective application, where the information provided for the purposes for which the resources have been allocated different from those identified in the project, or when the beneficiary grants certificates for donations that do not comply with the conditions laid down in this law. The decision referred to above must be notified to the donor and to the other parties by registered letter. Against this resolution, the resources laid down in Law No. 19,880 on Administrative Procedures shall be established. Once the above resolution is found, it will be forwarded by the National Council of Culture and the Arts to the Internal Revenue Service, so that it proceeds with the tax turn referred to in the following paragraph. The beneficiary affected by that decision shall pay the tax equivalent to the tax equivalent to the credit used by the donor in good faith. The representative of the beneficiary, as informed by the latter to the Committee at the time of requesting the approval of the project, shall be jointly and severally liable for payment of the said tribute and for the adjustments, interests and fines to be determined, Unless he proves to have objected to the acts giving cause for the sanction or who did not have knowledge of them. For the purposes of its spin, determination, readjustment and application of penalties, this tribute shall be considered as a tax subject to withholding and shall not be deducted as expenditure by the taxpayer in the determination of its taxable liquid income. affects the tax of the first category of the Law on Income Tax. Against the turn of the Internal Revenue Service, the taxpayer may deduct claim under the general procedure laid down in Title II of Book III of the Tax Code only if it does not comply with the National Council of Culture and Arts that has served as a background. In addition, beneficiaries who have not complied with any of the obligations described above or any of the cultural remuneration provided for in the Regulation will not be able to submit new projects under this law for a period of three years from the notification of the resolution that sanctions the non-compliance. The Committee may ask the Internal Revenue Service, in the form and time limit specified in this report, for resolutions which it has issued during the financial year and which may result in the loss of the tax benefits established in the present law. Annually, the Committee for Cultural Grants will have to evacuate a complete report containing all the information indicated in this article, consolidated, that allows to know the donated amounts, the donors and the beneficiaries, protecting the Tax secrecy as far as this does not prevent public knowledge of the good use of this franchise. This report should be made publicly available and sent to the Senate and Chamber of Deputies ' Finance and Education Committees. TITLE V General provisions Article 13-Release of the procedure for innuendo and exemption from tax on inheritance, allowances and donations. Donations made in accordance with this law, even those that exceed the absolute limit and the special limits set by this law for donations, will be released from the process of insinuation and will be exempt from taxes. established in law No. 16,271, on inheritance tax, allowances and donations. Article 14.-Donations in kind. The taxpayers of the first category, complementary global taxes, and inheritances, will be able to make donations in kind. For these purposes, in case the donor is a taxpayer of the first category tax of the Law on Income Tax, which determines his or her effective income on the basis of complete accounting, or is also a taxpayer affected the supplementary global tax which declares the same type of income, the value of the species shall be constituted by its cost for the purposes of that law, and its transfer shall be recorded and documented in the form established by the Service of Internal taxes by resolution. The other contributors mentioned in the first subparagraph shall determine the value of the species that they donate according to the rules of valuation of goods contained in law No. 16,271, on inheritance tax, allowances and donations. However, where no valuation methods are established for specific goods in that law, the beneficiary shall have a report of independent experts, the cost of which shall be his or her charge and shall not be part of the donation. The donated species shall not form part of the cost of the assets of the donors who determine their actual income according to complete accounting, during the execution of the project. In addition, in the case of the donation of species to be part of the fixed assets of the donors, during the period of execution of the project, they will not be able to deduct any sum for depreciation. Donations in species that are made under this law will not be applicable to those provisions of the Law on Sales and Services Tax and its Regulations, which require the determination of a proportional tax credit when there are exempt or untaxed transactions. Article 15.-Incompatibility with other benefits. Donations made in accordance with this law shall not be subject to the provisions of Article 69 of Law No. 18,681 on supplementary rules of financial administration. Article 16.-Certificates of donation. The donors referred to in Article 1 (2) of this law, or their representatives, as appropriate, shall maintain in their possession the certificate that the donor gives to them, giving account of the donation made. In the case of second-rate tax payers, it will be the eligible or paying employers who will be required to keep the above certificates. In the case of a yearly benefit relief, the taxpayer himself must retain the certificates. In the case of the additional tax, the payers of the respective income must keep a copy of the certificates indicated, provided that they impute the credit of this law against the withholding tax of this tax. Where an annual tax return is to be submitted or if the taxpayer's benefit is to be reliqued, the taxpayer shall retain the certificates. In the cases mentioned above, the certificates may be required by the Internal Revenue Service in the exercise of their supervisory powers. Article 17.-Financing of projects by the Fisco. The Fiscus may contribute to the financing of the projects referred to in this law, provided that, in accordance with the requirements that it requires, they will have free entry in case the contribution to the financing of the project is for the total of the missing, and of a reduced price, if it is not, or di taxation of a percentage of free tickets determined by the Regulation for basic and medium-education establishments, whether they be state, municipal administration or with shared funding, and to be implemented in regions different from the Metropolitan Region of Santiago, by institutions that have the headquarters of their activities in those regions. The resources allocated to the Public Sector Budget Law for these purposes shall be divided, in equal parts, into 14 regional funds, in proportion to the territory and population of each of those regions, in respect of the sum of the territory and the population of all. 50% of the resources of each of these regional funds will be distributed and delivered at the end of the first semester of each calendar year, and the remaining amount, at the end of the second semester. The distribution of the resources of each regional fund, among the projects referred to in the first subparagraph, shall be made in proportion to the amount of the donation made available to each of those in respect of the total donations that have been made. specified in the six-month period in question. The tax contribution that this concept is granted will be equal to 15% of the amount of the respective donation or the percentage that will result according to the resources available to the respective fund. Such resources may be used only within one year, counted from the date of delivery to the beneficiary, and in cultural activities carried out in the regions referred to in the first subparagraph. By decree of the Ministry of Education, endorsed by the Ministry of Finance, the way in which the contribution of resources will be delivered by the funds, as well as the aspects related to the commitments and guarantees of the beneficiaries will be established. for with the Fisco. The identification of the beneficiaries of the contribution shall correspond to the Committee referred to in Article 1 (3) of this Law. Article 18.-Acceptance of expenses related to the development of activities complementary to the donations of this law. For the purposes of Article 31 of the Law on Income Tax, the deduction will be accepted as expenses necessary to produce the income, of the disbursements linked to the use of personnel, inputs or equipment of the donor in the development of activities complementary to the donations regulated in this law. Likewise, with respect to the Value Added Tax, the rules of proportionality established by the Law on Sales and Services Tax, and its Rules of Procedure, will not apply to them. Article 19.-Information to the Chamber of Deputies. The National Council for Culture and the Arts will report annually and in writing to the Finance Committee of the Chamber of Deputies on the use of the tax benefits contained in this law and the number of projects approved by the Committee. Article 20-Mechanisms of information and transparency. Before 30 June each year, the Committee shall prepare annually for statistical and information purposes a report which shall include in general and in aggregated terms the following information relating to the calendar year previous: a. Identification of approved projects, indicating their purpose, budget, amounts effectively received and region to which they were intended. b. Number of contributors who have made donations in the same period. c. Total amount of resources committed by the contributors to projects approved by the Committee, and the regions of the country that concentrate the greatest commitment of resources for these projects should be indicated. The report referred to in the preceding paragraph shall be made public, and shall be published electronically on the Committee's website by 31 July of each year at the latest. '; TRANSITIONAL ARTICLES Article 1. This law shall enter into force on 1 January of the year following that of its publication in the Official Journal. Article 2.-The Regulation referred to in Article 1 (5) of the Law on Cultural Grants, contained in Article 8 of Law No 18,985, as replaced by the single article of this Law, must be given, at the latest, within the Ninety-day period of time taken from the entry into force of the law. Article 3.-During the first quarter of 2017, the National Council for Culture and the Arts will have to instruct independent experts to carry out an evaluation of this law as an instrument of promotion for the realization of the of cultural activities. Additionally, the Internal Revenue Service will have to produce a full report on the use of the franchise for cultural donations, including all donors and donors, the amounts involved and a review of all the audit processes, including citations, liquidations and eventual tax trials. This report should be sent to the Finance and Education, Sports and Recreation Commissions of the Chamber of Deputies, and of Finance and Education, Culture, Science and Technology of the Senate. The study referred to in the first subparagraph shall at least carry out an analysis of the effect or impact of this law on the creation of new initiatives and projects, and the quality of such initiatives and projects. development of existing institutions at the date of entry into force of this law, mainly in terms of impact on communities and society, and encouragement for the development of more and better cultural initiatives. The abovementioned study shall also include, in general and in aggregate terms, the same information as referred to in Article 12 of this Law. Both studies will be of public knowledge, and must be published in electronic or digital form by 31 August 2017 and sent, on the same date, to the Finance and Education, Sports and Recreation Commissions of the Chamber of Deputies, and Finance and Education, Culture, Science and Technology of the Senate. The above is without prejudice to the evaluations that the competent authorities undertake annually on the use of this law by the private sector, which will be of public knowledge, and must be published in electronic form. within the first half of each year. ' And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, May 26, 2013.-SEBASTIAN PINERA ECHENIQUE, President of the Republic.-Carolina Schmidt Zaldivar, Minister of Education.-Julio Dittborn Cordua, Minister of Finance (S).-Luciano Cruz-Coke Carvallo, Minister-President of Culture and the Arts. What I transcribe to you for your knowledge.-I greet you, Fernando Rojas Ochagavia, Assistant Secretary for Education.