Common use of Exemption from Taxes Clause in Contracts

Exemption from Taxes. 1. The GGGI and its property, assets and income shall be: a. exempt from all direct taxes except those which are, in fact, no more than charges for public utility services; and b. exempt from customs duties in respect of articles imported by the GGGI for its official use. It is understood, however, that articles imported under such exemption shall not be sold in the Republic of Korea except under conditions agreed with the appropriate authorities in advance. 2. While the GGGI shall not, as a general rule, claim exemption from excise duties and from taxes on the sale of movable and immovable property that form part of the price to be paid, nevertheless, when the GGGI is making important purchases for official use of property on which such duties and taxes have been charged or are chargeable, the appropriate authorities shall, whenever possible, make appropriate administrative arrangements for the remission or return of the amount of the duty or tax.