Gross-Up - ISDA Provision: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
No edit summary
 
(5 intermediate revisions by the same user not shown)
Line 1: Line 1:
{{fullanat2|isda|2(d)(i)|2002|2(d)(i)|1992}}
#redirect[[Deduction or Withholding for Tax - ISDA Provision]]
{{nuts|ISDA|Gross-Up}}
Section {{isdaprov|2(d)}} does the following:
*'''Net obligation''': if a counterparty suffers withholding it generally doesn’t have to gross up – it just remits tax to the revenue and pays net.
*'''Refund obligation where tax subsequently levied''': if a counterparty pays gross and subsequently is levied the tax, the recipient must refund an equivalent amount to the tax.
*'''{{isdaprov|Indemnifiable Tax}}''': the one exception is “Indemnifiable Tax” - this is tax arises as a result of the payer’s own status vis-à-vis the withholding jurisdiction. In that case the payer has to gross up.

Latest revision as of 17:54, 29 March 2018