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CHAPTER VIII
ROYALTY AND TAX SYSTEM

Clause Thirty-Seven
Royalty

One. CTM shall pay the Territory a royalty amounting to nine per cent (9%) of the total operating revenue. For this purpose revenue shall be all amounts billed to the customers regardless of the relevant settlement terms.

Two. The payment shall be made quarterly within thirty days following the quarter it refers to, with the following breakdown: eight per cent (8%) to the Government Finance Department and one per cent (1%) to CTT.

Three. Once the services rendered are liberalised, the royalty referred to above shall be calculated taking into consideration the gross revenue arising from franchised services. Therefore, CTM shall be subject to a treatment identical to that of its competitors in respect of any liberalised services and in accordance with the law in force.

Clause Thirty-Eight
Tax System

During the life of the Concession, CTM shall not be liable to customs dues in respect of imports of any material required for the operation. CTM shall be further exempted from sales tax both in terms of goods and services it may purchase, as well as goods and services provided by CTM within the scope of the Concession.

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