One simple way of addressing foreign tax risks is a(n)__________,whereby the local licensee is obligated to pay all taxes other than those specifically allocated to the foreign partner.

Question

Quizplus · Accepted Answer

A gross-up clause is a provision in a contract that requires the local licensee to cover all taxes, except those specifically assigned to the foreign partner, effectively addressing foreign tax risks by ensuring the foreign partner is not adversely affected by unexpected local tax changes.

One Simple Way of Addressing Foreign Tax Risks Is A(n)__________,whereby