Common use of Resident Individual or Entity Contractors Clause in Contracts

Resident Individual or Entity Contractors. Except as provided in Subsection 3.2.2 and 3.2.3 (in the case where the Contractor is a non-resident individual or a foreign corporation or partnership not engaged in a trade or business in Puerto Rico), AFI shall deduct and withhold at the source an amount equal to seven percent (7%) of the portion of any payments due to the Contractor under the Contract that relate to architectural, engineering design or consulting services rendered by the Contractor not including “construction of works”, as defined in, and as required by, Section 1143 of the Puerto Rico Internal Revenue Code of 1994, as amended, (the “Puerto Rico Tax Code”), L.P.R.A. T.13, § 8543; provided, however, that such deduction and withholding obligation shall not apply to the first $1,500.00 of payments due to the Contractor during each calendar year; and provided, further, that if the Contractor is an individual and submits to AFI, on the date of execution of the Contract by the Contractor and on each anniversary thereof, a letter issued in the name of the Contractor by the Puerto Rico Treasury Department and dated not more than sixty (60) days prior to such date or anniversary, as the case may be, stating that the Contractor is current in the payment of all taxes to the Puerto Rico Treasury Department, the amount to be deducted and withheld pursuant to this paragraph shall be reduced to five percent (5%). All Applications for Payment submitted by the Contractor shall specify the portion of the Work described therein that relates to architectural, engineering design or consulting services. If any Application for Payment fails to so specify, AFI shall have the right to assume, for purposes of the preceding paragraph, that up to five (5%) of the Work described therein relates to architectural, engineering design or consulting services. Notwithstanding the foregoing, the Contractor shall be exempted from the deduction and withholding requirement set forth in the first paragraph of this Subsection 3.2.1 (and AFI shall not deduct and withhold any amount pursuant thereto) (a) if, in the event the Contractor is a corporation or partnership, the Contractor submits to AFI, on the date of execution of the Contract by the Contractor and on each anniversary thereof, a letter issued in the name of the Contractor by the Puerto Rico Treasury Department and dated not more than sixty (60) days prior to such date or anniversary, as the case may be, stating that the Contractor is current in the payment of all taxes to the Puerto Rico Treasury Department, and (b) if the Contractor is an individual, with respect to payments due to the Contractor under the Contract during the first three (3) years of the Contractor’s commencement of activity of rendering services; provided that, solely in the case of the preceding clause (b), the Contractor shall have certified in writing under the penalties of perjury (i) the date on which it commenced the activity of rendering services and (ii) that the Contractor has not previously taken advantage of the exemption described in the preceding clause (b).

Resident Individual or Entity Contractors. Except as provided in Subsection 3.2.2 and 3.2.3 (in the case where the Contractor is a non-non• resident individual or a foreign corporation or partnership not engaged in a trade or business in Puerto Rico), AFI PRIFA shall deduct and withhold at the source an amount equal to seven percent (7%) of the portion of any payments due to the Contractor under the Contract that relate to architectural, engineering design or consulting services rendered by the Contractor not including “"construction of works”", as defined in, and as required by, Section 1143 of the Puerto Rico Internal Revenue Code of 1994, as amended, (the “"Puerto Rico Tax Code”"), L.P.R.A. T.13, § 8543; provided, however, that such deduction and withholding obligation shall not apply to the first $1,500.00 of payments due to the Contractor during each calendar year; and provided, further, that if the Contractor is an individual and submits to AFIPRIFA, on the date of execution of the Contract by the Contractor and on each anniversary thereof, a letter issued in the name of the Contractor by the Puerto Rico Treasury Department and dated not more than sixty (60) days prior to such date or anniversary, as the case may be, stating that the Contractor is current in the payment of all taxes to the Puerto Rico Treasury Department, the amount to be deducted and withheld pursuant to this paragraph shall be reduced to five percent (5%). All Applications for Payment submitted by the Contractor shall specify the portion of the Work described therein that relates to architectural, engineering design or consulting services. If any Application for Payment fails to so A specify, AFI PRIFA shall have the right to assume, for purposes of the preceding \ paragraph, that up to five (5%) of the Work described therein relates to \ architectural, engineering design or consulting services. / Notwithstanding the foregoing, the Contractor shall be exempted from the deduction and withholding requirement set forth in the first paragraph of this Subsection 3.2.1 (and AFI PRIFA shall not deduct and withhold any amount pursuant thereto) (a) if, in the event the Contractor is a corporation or partnership, the Contractor submits to AFIPRIFA, on the date of execution of the Contract by the Contractor and on each anniversary thereof, a letter issued in the name of the Contractor by the Puerto Rico Treasury Department and dated not more than sixty (60) days prior to such date or anniversary, as the case may be, stating that the Contractor is current in the payment of all taxes to the Puerto Rico Treasury Department, and (b) if the Contractor is an individual, with respect to payments due to the Contractor under the Contract during the first three (3) years of the Contractor’s 's commencement of activity of rendering services; provided that, solely in the case of the preceding clause (b), the Contractor shall have certified in writing under the penalties of perjury (i) the date on which it commenced the activity of rendering services and (ii) that the Contractor has not previously taken advantage of the exemption described in the preceding clause (b).perjury

Resident Individual or Entity Contractors. Except as provided in Subsection 3.2.2 and 3.2.3 (in the case where the Contractor is a non-resident individual or a foreign corporation or partnership not engaged in a trade or business in Puerto Rico), AFI SOEP shall deduct and withhold at the source an amount equal to seven percent (7%) of the portion of any payments due to the Contractor under the Contract that relate to architectural, engineering design or consulting services rendered by the Contractor not including “"construction of works”", as defined in, and as required by, Section 1143 1062.03 of Act No. 1 of January 31 , also ... known as the Puerto Rico Internal Revenue Code of 1994, as amended, (the “Puerto Rico Tax Code”), L.P.R.A. T.13, § 8543; provided, however, that such deduction and withholding obligation shall not apply to the first i .\ $1,500.00 of payments due to the Contractor during each calendar year; and 'i provided, further, that if the Contractor is an individual and submits to AFISOEP, on the date of execution of the Contract by the Contractor and on each anniversary thereof, a letter issued in the name of the Contractor by the Puerto Rico Treasury Department and dated not more than sixty (60) days prior to such date or anniversary, as the case may be, stating that the Contractor is current in the payment of all taxes to the Puerto Rico Treasury Department, the amount to be deducted and withheld pursuant to this paragraph shall be reduced to five percent (5%). Contract Agreement 6 All Applications for Payment submitted by the Contractor shall specify the portion of the Work described therein that relates to architectural, engineering design or consulting services. If any Application for Payment fails to so specify, AFI SOEP shall have the right to assume, for purposes of the preceding paragraph, that up to five (5%) of the Work described therein relates to architectural, engineering design or consulting services. Notwithstanding the foregoing, the Contractor shall be exempted from the deduction and withholding requirement set forth in the first paragraph of this Subsection 3.2.1 (and AFI SOEP shall not deduct and withhold any amount pursuant thereto) (a) if, in the event the Contractor is a corporation or partnership, the Contractor submits to AFISOEP, on the date of execution of the Contract by the Contractor and on each anniversary thereof, a letter issued in the name of the Contractor by the Puerto Rico Treasury Department and dated not more than sixty (60) days prior to such date or anniversary, as the case may be, stating that the Contractor is current currently in the payment of all taxes to the Puerto Rico Treasury Department, and (b) if the Contractor is an individual, with respect to payments due to the Contractor under the Contract during the first three (3) years of the Contractor’s 's commencement of activity of rendering services; provided that, solely in the case of the preceding clause (b), the Contractor shall have certified in writing under the penalties of perjury (i) the date on which it commenced the activity of rendering services and (ii) that the Contractor has not previously taken advantage of the exemption described in the preceding clause (b). SOEP also shall deduct and withhold 1.5% of the gross amount paid under this Agreement, in accordance with Article 1 of Act No. 48 of June 30, SOEP shall forward such withheld amounts to the Puerto Rico Treasury Department. At this moment Consultant has not received an authorization from the Treasury \ Department stating that part or all of the services rendered under this Agreement - are exempt from paying the 1.5%. Consultant will make reasonable efforts to obtain the corresponding authorization from the Treasury Department in order to be exempt within Puerto Rico. The retention practice shall continue to be enforceable until and when Consultant obtains and submits to SOEP certified \ . copy of exemption issued by the Treasury Department. Upon receipt of said exemption notice, SOEP shall modify the retention practice in order to make it consistent with the terms of the exemption certification. SOEP will be responsible for notifying the Treasury Department the percentage of retention applied (as specified on the exemption), otherwise, there will not be an exemption granted.

Resident Individual or Entity Contractors. Except as provided in Subsection 3.2.2 and 3.2.3 (in the case where the Contractor is a non-non• resident individual or a foreign corporation or partnership not engaged in a trade or business in Puerto Rico), AFI PRIFA shall deduct and withhold at the source an amount equal to seven percent (7%) of the portion of any payments due to the Contractor under the Contract that relate to architectural, engineering design or consulting services rendered by the Contractor not including “"construction of works”", as defined in, and as required by, Section 1143 of the Puerto Rico Internal Revenue Code of 1994, as amended, (the “"Puerto Rico Tax Code”"), L.P.R.A. T.13, § 8543; provided, however, that such deduction and withholding obligation shall not apply to the first $1,500.00 of payments due to the Contractor during each calendar year; and provided, further, that if the Contractor is an individual and submits to AFIPRIFA, on the date of execution of the Contract by the Contractor and on each anniversary thereof, a letter issued in the name of the Contractor by the Puerto Rico Treasury Department and dated not more than sixty (60) days prior to such date or anniversary, as the case may be, stating that the Contractor is current in the payment of all taxes to the Puerto Rico Treasury Department, the amount to be deducted and withheld pursuant to this paragraph shall be reduced to five percent (5%). All Applications for Payment submitted by the Contractor shall specify the portion of the Work described therein that relates to architectural, engineering design or consulting services. If any Application for Payment fails to so specify, AFI PRIFA shall have the right to assume, for purposes of the preceding paragraph, that up to five (5%) of the Work described therein relates to architectural, engineering design or consulting services. Notwithstanding the foregoing, the Contractor shall be exempted from the deduction and withholding requirement set forth in the first paragraph of this Subsection 3.2.1 (and AFI PRIFA shall not deduct and withhold any amount pursuant thereto) (a) if, in the event the Contractor is a corporation or partnership, the Contractor submits to AFIPRIFA, on the date of execution of the Contract by the Contractor and on each anniversary thereof, a letter issued in the name of the Contractor by the Puerto Rico Treasury Department and dated not more than sixty (60) days prior to such date or anniversary, as the case may be, stating that the Contractor is current in the payment of all taxes to the Puerto Rico Treasury Department, and (b) if Contract Agreement - 4 - the Contractor is an individual, with respect to payments due to the Contractor under the Contract during the first three (3) years of the Contractor’s 's commencement of activity of rendering services; provided that, solely in the case of the preceding clause (b), the Contractor shall have certified in writing under the penalties of perjury (i) the date on which it commenced the activity of rendering services and (ii) that the Contractor has not previously taken advantage of the exemption described in the preceding clause (b).