Previous Clause | Next Clause | Table of Contents

(a) The State undertakes not to give power to any Local Government to make laws imposing, altering or extending any Tax, duty or fee on the Project, or on the Company, except where power to do so has already been given under Applicable Law as at the Effective Date of this Agreement: in such case, (i) this Agreement shall not preclude any Local Government from passing a law or regulation raising or altering taxes or duties that it has the right to impose in accordance with the Applicable Law, provided that such raising or alteration applies in a non-discriminatory manner, and (ii) the Company shall have the right to appeal those changes under the Applicable Law including relevant administrative procedures.

(b) If a Local Government purports to pass a law contrary to this Agreement, or makes it impossible for any Party to perform or receive the benefits of this Agreement, or imposes, alters or extends any Tax, duty or fee in breach of this Section, the State undertakes to move to disallow the imposition of such Local Government law, or to give credit to the Company against Taxes due for amounts paid under such Local Government law.

Example 1
Subject to the provisions in this Agreement, the Company shall pay to the Government and fulfill its tax liabilities including its obligations as a tax withholder as hereinafter provided

[…]

(x) Levies, taxes, charges and duties imposed by Local Governments in Country which have been approved by the Central Government; […]

REFER TO MMDA DISCLAIMERS AND MMDA USER’S GUIDE
PRIOR TO ANY USE OF THIS DOCUMENT.

Previous Clause | Next Clause | Table of Contents

Chinese (Simplified) French Portuguese (Brazil) Russian Spanish