IMPESTS Law 26.181 HIDRIC FUND of INFRAESTRUCTURE. Be located throughout the territory of the Nation, with specific impact on the development of projects, works, maintenance and services of water infrastructure, the recovery of productive land, the control and mitigation of floods and the protection of road and rail infrastructure, so that in one of the stages of its circulation, a tax on the transfer or import of naphthas and on the natural gas distributed by nets for compressed natural gas. Alcances. Exemptions. Watch. Sanctioned: November 29, 2006 Cast: December 19, 2006

The Senate and Chamber of Deputies of the Argentine Nation

in Congress, etc.

forcefully sanctioned

Law:

HIDRIC FUND OF INFRASTRUCTURE

ARTICLE 1 Is it in all the territory of the Nation, with specific impact on the development of projects, works, maintenance and services of water infrastructure, recovery of productive land, control and mitigation of floods and protection of road and rail infrastructure, so that in one of the stages of its circulation, a tax on the transfer to a onerous or free title or import of NOV92 single lead

The tax mentioned in the preceding paragraph shall also apply to the encumbered fuels consumed by those responsible, except that used in the development of other products subject to the same, as well as any inventory difference determined by the Federal Public Income Administration, autarchic entity within the Ministry of Economy and Production, provided that the difference cannot be justified on grounds other than the alleged imposition.

For the purposes of this tax shall be understood by nafta without lead, nafta with lead and compressed natural gas, to the fuels defined as such, in article 4 of the Annex to Decree No. 74 of 22 January 1998 and its modifications, regulation of the Liquid Fuels and Natural Gas Tax.

ARTICLE 2 The tax established by Article 1 will be calculated using the NINCO liquid by SCIENT (5%) when it comes to nafta without lead until NOVENTA and DOS (92) RON, nafta without lead of more than NOVENTA and DOS (92) RON, nafta with lead until NOVENTA and DOS (92) RON and nafta with lead of more than NOVENTA

The liquor referred to in the preceding paragraph may be increased or diminished by the national executive branch in up to a VEINTE BY CIENTO (20%) of its amount, for each or every fuel encumbered by this law.

The amount resulting from the liquidation of the tax by those responsible for the tax obligation cannot be less than that arising from the application of the fixed amount of CINCO CENTAVOS DE PESO ($ 0.05) per litre of lead-free nafta until NOVENTA and DOS (92) RON, non-directed nafta of more than NOVENTA and DOS (92) RON, NIFT-CNG

Article 3 They are subject to the tax:

(a) When it comes to leadless nafta until NOVENTA and DOS (92) RON, leadless nafta of more than NOVENTA and DOS (92) RON, lead nafta until NOVENTA and DOS (92) RON and nafta with lead of more than NOVENTA and DOS (92) RON:

I. Those who make the definitive import of these fuels.

II. Those subject in the terms of article 3 (b) and (c) of Law 23.966, Title III on Liquid Fuels and Natural Gas Tax, ordained in 1998 and its amendments.

(b) When it comes to natural gas distributed by networks intended for compressed natural gas, which are subject in the terms of Article 12 of Law 23.966, Title III of Liquid Fuels and Natural Gas Tax, a text ordered in 1998 and its modifications.

Carriers, depositaries, possessors or holders of encumbered fuel that do not have the documentation that proves that the present tax has been taxed on it or the products, shall be responsible for the entry of the tax without prejudice to the sanctions that legally correspond to them and the responsibility of the other subjects involved in the transgression.

ARTICLE 4 The imponible fact is perfected:

(a) When it comes to leadless nafta until NOVENTA and DOS (92) RON, leadless nafta of more than NOVENTA and DOS (92) RON, lead nafta until NOVENTA and DOS (92) RON and nafta with lead of more than NOVENTA and DOS (92) RON:

I. With the delivery of the good, the issue of the invoice or equivalent act, in the terms of article 7 of the Annex to Decree No. 74/98 and its modifications, whichever is the case.

II. With the withdrawal of the product for consumption, in the case of the fuels referred to, consumed by the subject responsible for the payment.

III. At the time of the verification of the possession of or products, when it comes to those responsible referred to in the last paragraph of the preceding article.

IV. With the determination of inventory differences.

V. With the office to square.

(b) When it comes to natural gas distributed by networks intended for compressed natural gas, at the expiration of the respective invoices.

ARTICLE 5o Transfers of encumbered products are exempt from taxation when export is destined. ARTICLE 6 Those who import encumbered fuel shall enter the present tax before the office is made to square, which shall be liquidated and entered jointly with the customs taxes, the Liquid Fuels Tax and Natural Gas Tax and the Attached Value Tax, by means of a perception in the source to be performed by the Federal Public Income Administration.

For the purposes provided for in the preceding paragraph, passive subjects may choose to enter the tax in its entirety, or in accordance with the special regime established by article 14 of the Annex to Decree No. 74/98 and its amendments, regulation of Act No. 23.966, Title III on Liquid Fuels and Natural Gas Tax, which was ordered in 1998 and its amendments.

ARTICLE 7 The national executive branch may establish, for such cases as it deems appropriate, a regime whereby the tax of this law shall be refunded to those who have been liquidated and invoiced, for which it shall empower the Federal Public Income Administration to establish the applicable requirements and procedures. ARTICLE 8 The fiscal period of liquidation of the tax shall be monthly and on the basis of affidavits submitted by the passive subjects, except in the case of import operations in which the procedure provided for in Article 6 of this Act shall apply.

Subjects defined in Article 3 of this Law may in the monthly affidavit the amount of the tax that has been paid to them and invoiced by another passive subject, or who have entered at the time of the importation of the product.

Article 9 The tax set forth in this Act shall be governed by the provisions of Act No. 11,683, which was ordained in 1998 and its amendments, and its application, perception and control shall be carried out by the Federal Public Income Administration, which is empowered to issue the following rules:

(a) On permanent or temporary fiscal intervention of establishments where encumbered, commercialized or manipule fuel is produced, with or without charge for responsible companies;

(b) Concerning due control and monitoring of the use or application of exempt products according to their destination;

(c) Referred to the registration of officials and documentation and registration of their operations;

(d) On physical-chemical analysis of products related to the imposition;

(e) On time, form and other requirements for tax entry, and may also establish advances to the tax;

(f) Any other necessary for the purposes of the control and collection of the tax.

ARTICLE 10. The tax contained in transfers or imports of encumbered fuel shall be discriminated against from the sale price or import value, respectively, and it shall be understood that the birth of the obligation occurs on the basis of the same encumbered operation for the purposes set out in article 44 of the Decree No. 692 of 11 June 1998 and its amendments to the Law on Attached Value Tax, a text ordered in 1997 and its amendments. ARTICLE 11. The tax of this law, contained in transfers or imports of encumbered fuel, shall not be computed as compensation or payment on account of any existing national tax or to be created.

Except as provided for in article 7 of this Act, the national State guarantees the intangibility of the assets that make up the Water Infrastructure Trust constituted in accordance with Title II of the Decree No. 1381 of 1 November 2001, as well as the stability and invariability of the tax, which does not constitute any budgetary remedy, and will only have the destination set out in article 1 of this Act.

ARTICLE 12. For the purpose of determining the tax, for cases not provided for in this Act, the provisions of Act No. 23.966, Title III on Liquid Fuels and Natural Gas Tax, which was ordered in 1998 and its amendments and regulations, shall be applied in supplement. ARTICLE 13. The proceeding of the tax of this law shall include the trustees referred to in Chapter II of Title II of Decree No. 1381/01, in replacement of the Water Infrastructure Rate established in Title I of the aforementioned norm, which is ratified in its application until the date of entry into force of this law, with the scope of the tax provided by it and in the absence of any consumption made outside the country. ARTICLE 14. The national executive branch, within the time of SESENTA (60) days of the publication of this law, will have the driving force to adapt to it, the constitution of the Water Infrastructure Trust provided for by Decree No. 1381 of 1 November 2001. ARTICLE 15. Orders No. 1381 of 1 November 2001, No. 2236 of 5 November 2002 and No. 508 of 23 April 2004. ARTICLE 16. The provisions of this Act shall enter into force on the day of publication in the Official Gazette. ARTICLE 17. Contact the Executive.

IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE NEW DIAS OF THE MONTH OF NOVEMBER OF THE YEAR DOS MIL SEIS.

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ALBERTO E. BALESTRINI. . EDUARDO M. LOPEZ ARIAS. . Enrique Hidalgo. . Juan H. Estrada.