Part II PROTOCOL AMENDING THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF THE REPUBLIC OF ARGENTINA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXESON INCOME AND CAPITAL SIGNED AT BUENOS AIRES ON 3rd JANUARY 1996

At the moment of signing the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital, this day concluded between the United Kingdom and the Republic of Argentina, the undersigned have agreed upon the following provisions which shall be an integral part of the Convention.

(1)

With respect to Article 7, paragraph (1):

The export of goods or merchandise purchased by an enterprise shall, notwithstanding the provisions of subparagraph (d) of paragraph (4) of Article 5 of the Convention, remain subject to the domestic legislation in force concerning export.

(2)

With respect to Article 7, paragraph (3):

In the case of Argentina, that paragraph shall not require the allowance of a total deduction for executive and technical assistance expenses when such deduction is limited by the terms of Article 151 of the Income Tax Regulations in force at the date of entry into force of this Convention, or any legislation or regulation which may be imposed thereafter and which is agreed by the competent authorities of the Contracting States to be of a substantially similar character.

(3)

With respect to Article 8:

The term “profits” includes profits, net profits and revenues derived directly from the operation of ships or aircraft in international traffic, and also includes interest on sums generated from the operation of ships or aircraft in international traffic provided that such interest is incidental to the operation.

(4)

With respect to Article 12:

(a)

the limitations on the taxation at source provided for under paragraph (2) are, in the case of Argentina, subject to the registration requirements provided for in its domestic legislation;

(b)

the limitations on the taxation at source of royalties referred to in subparagraph (b) of paragraph (2) shall apply only if the royalties are derived by the author himself or his descendants;

(c)

in the case of payments for technical assistance the tax payable in accordance with subparagraph (c) of paragraph (2) shall be determined after the deduction of the expenses directly related to the provision of such assistance.

(5)

With respect to Article 23, paragraph (5):

It is understood that if an extension of the time period mentioned in that paragraph is not agreed upon by the competent authorities, Argentina shall apply the rules provided in Article 21 of the Income Tax Law (Law no. 20628, text approved in 1986 and its modifications to date) in force at the date of signature of this Convention.

(6)

If after the date of signature of this Convention the Republic of Argentina concludes a Double Taxation Convention with a State that is a member country of the Organisation for Economic Co-operation and Development which limits the taxation in the country of source of business profits, insurance or reinsurance premiums, dividends, interest, royalties, payments for technical assistance or capital gains, to a rate that is lower or to a narrower taxable base than that provided for in this Convention, the lower rate (including any exemption) or narrower taxable base shall automatically apply for the purposes of this Convention from the date on which the Convention with that other OECD member country has effect.

(7)

With reference to Article 29:

It is understood that the competent authorities will consult together concerning the tax system and economic development of the territory in respect of which any proposal for a territorial extension has been made under the terms of that Article and, in the case of Argentina, the extension of the Convention shall be subject to the approval of the Ministry of Economy, Works and Public Services, Secretary of Public Revenue.