+1 vote

Withholding tax by Operating Company or Contractor?

asked Jul 4, 2014 in Commercial by cuchiang (2,310 points)
Is Operating Company required by the Governmental Authorities to pay withholding tax or any applicable levy on payments to Contractor under the Contract notwithstanding that Operating Company has not withheld such Taxes?

2 Answers

0 votes
answered Jul 4, 2014 by Normandy (21,040 points)
Company may withhold payment under the Contract or require other adequate security, where required by law or otherwise to cover Contractor’s Tax liabilities towards Governmental Authorities and forward any amounts so withheld or secured to the appropriate authorities.
0 votes
answered Jul 4, 2014 by josvanden (3,240 points)
If any sums payable to Contractor under a particular Contact become the subject to any mandatory deductions or withholding by the Governmental Authorities (or its political subdivisions), the amount of such payments shall be increased by Operating Company so that the net amount actually received by the Contractor shall equal the amount which, but for such deduction or withholding, would have been received by the Contractor.