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Tax Indemnification Agreement Template for Philippines

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Key Requirements PROMPT example:

Tax Indemnification Agreement

"I need a Tax Indemnification Agreement to protect my technology company from historical tax liabilities when acquiring a Philippine software development company, with the deal expected to close by March 2025."

Document background
The Tax Indemnification Agreement is a crucial document in Philippine business transactions where parties need to allocate tax risks and responsibilities. It is commonly used in mergers and acquisitions, corporate restructuring, joint ventures, and other significant business arrangements where one party agrees to protect another against specific tax liabilities. The agreement must comply with Philippine tax laws, particularly the National Internal Revenue Code and Bureau of Internal Revenue regulations. This document typically becomes necessary when there are concerns about historical tax liabilities, potential future tax assessments, or specific tax risks identified during due diligence. The Tax Indemnification Agreement includes detailed provisions on tax payment obligations, claim procedures, documentation requirements, and dispute resolution mechanisms, all structured within the framework of Philippine law and tax regulations.
Suggested Sections

1. Parties: Identification of the Indemnitor and Indemnitee, including their complete legal names, addresses, and tax identification numbers

2. Background: Context of the agreement, including the underlying transaction or relationship giving rise to the tax indemnification obligation

3. Definitions: Definitions of key terms including 'Tax', 'Tax Authority', 'Tax Claim', 'Indemnified Taxes', 'Loss', and other relevant terms

4. Scope of Indemnification: Detailed description of the tax matters covered by the indemnification and the extent of the indemnitor's obligations

5. Tax Payment Obligations: Procedures for payment of taxes, including timing, method, and currency of payments

6. Claims Procedures: Process for notifying and handling tax claims, including cooperation between parties and control of proceedings

7. Representations and Warranties: Statements regarding tax compliance, filing status, and other relevant tax matters

8. Duration and Survival: Term of the agreement and survival provisions for indemnification obligations

9. Dispute Resolution: Procedures for resolving disputes between parties, including jurisdiction and governing law

10. Miscellaneous Provisions: Standard contractual provisions including notices, amendments, assignment, and severability

Optional Sections

1. Tax Gross-Up Provisions: Additional provisions to ensure that indemnity payments themselves do not create additional tax liabilities

2. Third Party Claims: Specific procedures for handling tax claims involving third parties

3. Security Provisions: Requirements for security or collateral to secure indemnification obligations

4. Tax Return Preparation: Provisions regarding the preparation and filing of relevant tax returns

5. Refund and Credit Provisions: Procedures for handling tax refunds or credits related to indemnified taxes

6. Compliance with Transfer Pricing Rules: Specific provisions addressing transfer pricing compliance if relevant to the underlying transaction

Suggested Schedules

1. Schedule A - Covered Taxes: Detailed list of specific taxes covered by the indemnification

2. Schedule B - Excluded Taxes: List of taxes specifically excluded from the indemnification scope

3. Schedule C - Pre-Existing Tax Matters: List of known tax issues or ongoing proceedings as of the agreement date

4. Appendix 1 - Notice Requirements: Detailed procedures and requirements for tax-related notices

5. Appendix 2 - Claim Processing Procedures: Step-by-step procedures for processing and handling tax claims

6. Appendix 3 - Required Documentation: List of required supporting documentation for tax claims and payments

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Financial Services

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Relevant Teams

Legal

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Treasury

Corporate Secretarial

Risk Management

Accounting

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Mergers & Acquisitions

Relevant Roles

Chief Financial Officer

Tax Director

Corporate Lawyer

Finance Manager

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Corporate Secretary

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Treasury Manager

Accounting Manager

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Corporate Finance Director

Mergers & Acquisitions Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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