Ley 25.429

with rules stated in the foregoing Article 8, an administration remedu allows investor involved to berefunded accordingly.TITLE IIINCOME TAXARTICLE 12: The parties adhering to this investments regime may deduct, fromthe income tax balance, 100% of the amounts invested in surveys, explotation,special studies, mineral or metallurgical test, pilot plants, applied research andother tasks whose aim is determining their technical-economical feasibility.Deductions referred to in this article may be made notwithstanding thetreatment which may apply as amortizable investment expende-according to theincome tax.***Comment. Deduction of investments perfomed during the exploration stage up to the determinationof feasibility, allowed by the present Article (without prejude to the treatment that investors are givenaccording to the Profit Tax Law) implies a double deduction of such investments on the balance sheetwhere profits are discriminated. As regards new projects, such a deduction will be effective as ofproductive process is implemented.ARTICLE 13: Capital investments made for the execution of new miningprojects and the expansion of productive capacity of the existing miningoperations, as well as those required during operation shall be included in thefollowing amortization system for Income Tax.a) Investments made for equipment, civil works and construction to suplly the necessaryinfrastructure for its operation, such as access routes, roads, capture and transportationof the generation of electricity, camps, staff homes, works for health, education,comunication services, and other public services such as police, post-offices andcustoms, shall be amortized as follows:Sixty percent (60%) of the total amount of the infraestructure unit, during thefiscal year when it is commissioned, and forty percent (40%)in equalportions during the next two years.b) Investments made for the purchase of machinery, equipments, vehicles andinstallations not included in the above paragraph, shall be amortized at therate of one third per annum, as from star-up.ARTICLE 14: The profits stemming from the contribution of mines and miningrithts, such as social capital, in companies developing activities included in thisregime according to the provisions os Chapter III shall be exemt from Income Tax.The contributor and the companies collecting said assets must keep thecontribution in their corresponding assets for a period of no less than five (5)consecutive years as from their entry, except that, for duly justified reasons theAuthority of Application authorizes their confiscation. If this obligation is notcomplied with the exempted amount fulfillments is the responsability of thereceiving company, same shall be severally responsible for reimbursement,together with the contributor.***Comment. An Accelerated redemption is allowed so that the cash flow is improved during the firtsyears of a project, a time where monetary fluency in much sought.TITLE III20