Taxation of the Consortium Sample Clauses

Taxation of the Consortium. It is the Consortium Members’ common understanding that the implementation of the Project based on the principles of cooperation in this Agreement will not cause the Consortium to register for corporate income tax purposes, whether as taxable entity or in another form. No Consortium Member shall take any action that may contradict such common understanding of the Consortium Members. If the tax authorities nevertheless should tax the Consortium on the basis of income from the entire Contract, the Consortium Members shall closely cooperate and agree on a joint approach in responding to the tax authorities’ position. If the Consortium should be taxable, the Consortium Leader will coordinate the tax filling and tax payment process. Details will be agreed upon separately. In principle, each Consortium Member shall bear the corporate income tax to the extent it relates to its Scope of Work. The calculation of each Consortium Member's proportional amount of tax will be subject to the local tax law, each Consortium Member's pro-rata share of the taxable income and the relevant tax rate. If such calculation is not possible, the Consortium Members shall agree on another way of allocation of the respective tax. Taxes other than corporate income tax assessed on the Consortium shall be borne by the Consortium Members pursuant to their Proportionate Values.
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