Ley 25.429

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 IIIASSESSMENT OF RESERVESARTICLE 15: The assessment of mineral, economically exploitable reserves,performed and certified by a responsible professional, may be capitalized up tofifty percent (50%). The Capitalization and constitutions of the reserves shall haveexclusively accounting effects and shall not incide at all on the determination ofincome tax.The issue and release of shares generated by this capitalization as well theamendment of social contracts or bylaws, whatever their legal nature, insofaqr asthey are exempt from all the above-referenced capitalization, shall be sameexemption shall apply to the capitalizations or distributions of shares recived fromother corporations due to the latters capitalization.The Provincial governments adhering to this system must prove for similarexemptions within the scope of their respective jurisdictions.***Comment. The capitalization allowed in the Article differs from the provisions instituted by the MiningPromotion Law (Law 22095 hereby revoked) in the sense that the State no longer participates in thecertification of assessments, instead the Stake leaves to the exclusive responsability of the authorizingprofessionals involved, and the control of parties concerned every operation generated as aconsequence of the mentioned assessment.ARTICLE 16: The assessment of the reserves of minerals referred to hereinmust include the corresponding technical-economic feasibility survey of theexploitation of said reserves. The following basic factors shall be considered:a) Measured reserves.28