Withholding Income Taxes Sample Clauses

Withholding Income Taxes. Under federal tax laws, ordinary income tax rules apply to member benefits. A living allowance is taxable as “compensation for services” and generally is subject to withholding, even though members do not receive cash. Low-income members may be able to claim an exemption from withholding if (1) they had no tax liability in the previous year, and (2) they expect to have no tax liability in the current year. State income tax withholding laws also apply. Like all personal income taxes, taxes on the living allowance are the responsibility of the individual member. You should have members complete a W-4 form at the start of the term of service, with the help of your personnel officer. At the end of the tax year, programs must provide members with a W-2 form.

Withholding Income Taxes. The Parties shall cooperate with one another in accordance with applicable Laws and use commercially reasonable efforts to minimize or eliminate withholding taxes and similar obligation and, prior to making any payments under the Agreement, Kaken will advise Spruce of any applicable Tax Documents required for filing in order to reduce or eliminate withholding taxes. The Parties acknowledge and agree that under the current tax treaty between Japan and the U.S. in effect as of the Effective Date, all amounts payable by Kaken to Spruce pursuant to this Agreement (each, a “Payment”) shall not be reduced by any deduction or withholding for any present or future Taxes; provided, however, if Kaken is required by applicable Laws to deduct or withhold Taxes directly from any amount paid to Spruce, then, except as otherwise provided herein, Kaken shall deduct or withhold the required amount and will timely pay the full amount deducted or withheld to the relevant governmental authority in accordance with the applicable Laws and promptly transmit to Spruce an official Tax certificate or other evidence of such withholding sufficient to enable Spruce to claim such payment of Taxes from any applicable Governmental Authority, and the amount paid to Spruce shall be decreased by the amount so deducted or withheld. Notwithstanding the foregoing, to the extent Kaken or its Affiliates (a) assigns or otherwise transfers this Agreement or its obligations hereunder to an Affiliate or Third Party, (b) changes its location of incorporation from Japan to another location, (c) makes payments from an entity, or payments are deemed to be made from an entity, other than the Japan entity originally entering into this Agreement, or (d) fails to comply with applicable Laws or filing or record retention requirements to enjoy the benefit regarding withholding taxes under the applicable Laws but only if such failure is not due to Spruce’s action or inaction, in each case that results in a Tax being required to be withheld under applicable Laws that would not have been required to be withheld if such action had not been taken (each, a “Tax Changing Decision”) such that as a result of a Tax Changing Decision, Kaken is required by applicable Laws to deduct or withhold Taxes directly from any amount paid to Spruce, then (i) notwithstanding anything to the contrary in this Agreement, Kaken shall increase the amount paid to Spruce by the required amount such that the net amount actually received by...

Withholding Income Taxes