Definition[]
A tax clause is a contract provision that indicates which party is responsible for paying any taxes assessed in connection with the transaction.
Sample clause[]
| “ | DISTRIBUTOR agrees to pay and to hold harmless DEVELOPER on account of any taxes or other government charges (however denominated) imposed by the government within the Territory with respect to the execution or delivery of this Agreement, or any sales, licenses or other transactions hereunder or any income earned or payments received by DEVELOPER hereunder. To the extent DISTRIBUTOR is required to withhold or pay such taxes on payments to DEVELOPER, DISTRIBUTOR will promptly thereafter furnish DEVELOPER with funds in the full amount of the sums withheld or paid. | ” |