A gross-up clause is a contract provision which provides that all payments must be made in the full amount, free of any deductions without exercising any right of set-off. The provision will usually indicate that if there is a mandatory withholding or deduction required by law (usually with respect to tax), then the paying party shall "gross up" the payment so that the receiving party receives the same net amount.
A gross-up clause is a contract provision which provides that all payments must be made in the full amount, free of any deductions without exercising any right of set-off. The provision will usually indicate that if there is a mandatory withholding or deduction required by law (usually with respect to tax), then the paying party shall "gross up" the payment so that the receiving party receives the same net amount.
Source: Wikipedia "Gross-up clause" · CC BY-SA 4.0
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