United States: SALT Implications Of The House And Senate Tax Reform Bill


Many provisions of the House and Senate tax reform proposals would affect state and local tax regimes. SALT practitioners should monitor the progress of this legislation and consider contacting their state tax administrators and legislative bodies to voice their opinions.

The House Ways and Means Committee released its proposed tax reform bill on November 2, 2017, and its amended version on November 9, 2017 (House Bill). Also on November 9, the Senate Finance Committee announced its tax reform proposals (Senate Bill). Both bills are controversial in many respects, and many taxpayers and taxpayer advocacy groups oppose particular provisions. The only certainty is that the legislation that Congress ultimately adopts, if any, will not be identical to either bill. Nevertheless, the bills deserve careful study by taxpayers and their representatives.

Many of the bills' provisions will have an effect on state and local taxes (SALT), and this article highlights provisions of particular interest to SALT practitioners. It does not purport to be a complete analysis of the bills, and many of their provisions will not be mentioned here.

Individual Tax Changes

The reductions in individual federal tax rates would not have an immediate impact on SALT liabilities, but the expansion of the standard deduction and the repeal of the deduction for personal exemptions would affect the federal taxable income of many individuals, and these changes would be passed through to their state income tax returns in states that use federal taxable income as the base for calculating state taxable income. Other major individual changes include repealing the deduction for state and local income taxes. The House Bill would allow state and local property taxes to be deducted up to $10,000, while the Senate Bill would repeal this deduction entirely. These changes could result in many people who now itemize deductions taking the standard deduction instead. Individuals may want to recalculate their predicted state and local income tax liabilities with a view to adjusting their estimated tax payments.

The repeal of the deduction for state and local income taxes would be effective for tax years beginning in 2018. This raises the question of whether individual taxpayers should consider prepaying part, or even all, of their predicted 2018 state income tax liability in 2017 in order to receive a federal deduction for the payment. It would be one thing to prepay in 2017 a state estimated income tax payment that is due on April 15, 2018, but could this be pushed further? Could a taxpayer prepay his or her entire predicted 2018 state income tax liability in 2017 and get a deduction for it in 2017? Could the Internal Revenue Service (IRS) challenge such a position based on a general argument that it would distort the taxpayer's liability? The IRS has not addressed this issue in published guidance, but rulings suggest that cash-basis taxpayers can deduct state income taxes when paid, if state laws permits, as long as the payments are based on reasonable estimates of tax liability. Section 461 of the Internal Revenue Code (IRC), which generally addresses the timing of deductions, does not seem to apply to this situation. Of course, prepayment of state or local income taxes is only possible where permitted by the laws of the applicable jurisdiction.

A question has been raised as to whether self-employed persons could deduct state and local income taxes paid on business income as business expenses and not as itemized deductions, in which case they would not be affected by the repeal.

The proposed repeal of the deductions for state and local income taxes and property taxes would increase the burden of those taxes on individuals. In the past, state legislatures regarded the federal deduction as an indirect subsidy that reduced the burden of state taxes and, hence, enabled those taxes to be imposed at higher rates than would otherwise have been the case. The repeal would eliminate that subsidy and might put pressure on state legislatures to reduce state taxes.

Pass-Through Entities

The House Bill provides for a maximum 25 percent tax rate on business income from pass-through entities such as partnerships, limited liability companies or S corporations, for the purpose of incentivizing owners of small businesses. One is reminded of the ill-fated attempt by Kansas Governor Sam Brownback, who persuaded the legislature to totally exempt pass-through income from tax, with the odd result that a partner in a law firm was not liable for Kansas income tax, but the janitor who cleaned the law firm's offices at night was. The exemption also resulted in severe revenue shortfalls, and it was repealed after a few years.

The House Bill contains a number of provisions intended to confine the benefit of the low tax rate on income from flow-through entities to income from active business operations. Further, the House Bill's intent is to exclude compensation income from the application of the lower tax rate. The House Bill contains protective provisions designed to prevent game-playing by attempting to characterize compensation for services, which would not be eligible for the lower rate, as income from owning the business. These protective provisions could have SALT implications: whether income is compensation income or income from an entity's business can affect the extent to which it is taxed to nonresidents of a taxing state. Typically, a nonresident would pay state tax on compensation derived from services performed within the taxing state. Income from a flow-through business is typically taxed to a nonresident based on his or her share of the flow-through entity's income that is derived from conducting business in the state. Moreover, the calculation of an entity's net income, reduced by all or part of compensation paid to owners for services, can affect the entity's liability for entity-level income taxes that are imposed by some jurisdictions. Would an amount that is not actually paid as compensation but that is treated as compensation for purposes of a federal anti-avoidance provision be treated as compensation for state and local income tax purposes? The answer is not at all clear.

The Senate Bill takes a different approach. It would allow an individual to deduct 17.4 percent of "domestic qualified business income" from a partnership, S corporation or sole proprietorship. The deduction would not be available to specified service businesses (e.g., law and accounting firms) except in case of individuals whose taxable income does not exceed $150,000 for married individuals filing jointly ($75,000 for other individuals). The benefit of the deduction would be phased out for individuals earning more than these amounts. Eligible income would not include reasonable compensation paid to an S corporation shareholder or guaranteed payments to partners that reflected compensation for services. Investment-related income would not be eligible.

A provision addressing the treatment of carried interest income was added to the House Bill during the Ways and Means Committee mark-up process. A carried interest is an interest in a partnership or limited liability company that is received by the venture's organizers and that typically involves a 20 percent interest in the entity's profits even though the promoter has only put in 1 percent or less of the entity's capital. This structure is often used in hedge funds and other investment partnerships. If the fund realizes long-term capital gains, those are passed through to all of the partners, including the promoter. Some people have argued that the promoter's share should be treated as ordinary income because it represents partial compensation for the promoter's services. The House Bill would require the promoter's share of capital gains to be short-term capital gains, taxed at ordinary income rates, unless the property had been held for at least three years.

This change would not affect states that do not provide special treatment for capital gains. The House Bill does not treat carried interest income as compensation income, which is another approach that some people have suggested. If that approach were followed, the change could have dramatic SALT consequences, because compensation income is typically taxed to nonresidents who earn it in a taxing state, whereas capital gains on securities are typically not taxed to nonresidents. The Senate Bill does not address carried interest income.

Both bills would repeal a number of itemized deductions currently available to individuals, including deductions for tax preparation expenses, medical expenses, moving expenses and contributions to medical savings accounts. States would have to decide whether to decouple from these changes. While some changes may be noncontroversial, the changes to the deductions for medical expenses and medical savings accounts could raise policy issues for the states, particularly in light of the controversies surrounding the Affordable Care Act and the cost of medical expenses generally. State legislatures can be expected to focus on these provisions.

Both bills would increase the limitation on deducting cash contributions to public charities and some private foundations from 50 percent to 60 percent. It is unlikely that states would choose to decouple from this provision, but such a choice may well be on the table, particularly in states experiencing budgetary pressures.

The bills contain several provisions that would negatively affect employees and therefore could give rise to state and local decoupling because of voter pushback. One change, which at first blush seems unfair, would deny individuals a deduction for trade or business expenses incurred in their employment. Employees would not be able to deduct expenses such as local business travel, subscriptions to professional publications, professional organization dues and business entertainment, even though their self-employed counterparts would be able to deduct them. While the current deduction is limited by the restrictions of IRC section 212, many employees have business expenses that exceed those levels, and this change could be significant for them. As noted, state legislatures might choose to decouple from this provision because of its impact on individuals. The Ways and Means Committee's explanation of the House Bill indicates that the expansion of the standard deduction and the lower overall tax rates would reduce the adverse impact of this change, and that this would spare employees the need to keep track of business expenses. These factors will be of no comfort to higher-income employees.

Another employment-related change in the House Bill is a curtailment of the exclusion under IRC section 119 for employer-provided housing. Under present law, employer-provided housing is not taxable if it is provided for the convenience of the employer, is on the employer's business premises and is a condition of employment. There currently is no dollar limitation. The House Bill would limit the exclusion to $50,000 and would phase it out for individuals earning more than $120,000 a year. This change could affect executives of hospitals and educational institutions that occupy employer-owned housing on or immediately adjacent to the employer's premises. This is another provision from which states might choose to decouple.

Both bills would repeal the individual income tax exclusions for dependent care assistance programs, moving expenses and adoption assistance programs. Employers may object to these provisions.

Estate Tax

President Trump and others have long advocated repealing the estate tax, which they describe as a "death" tax. The House Bill would repeal the estate tax, effective in 2023, along with the generation-skipping transfer tax, which has always been viewed as a backstop for the estate tax. The transfer tax credit would be doubled, effectively increasing the present exclusion from about $5 million to about $10 million for a married couple. The top estate tax rate would be lowered to 35 percent. The gift tax would be left in place, thus creating an incentive for wealthy people to hold on to property rather than giving it to family members during their lifetimes. There would be no change to the current rule that allows property held at death to receive a new income tax basis equal to its value at death. The juxtaposition of these provisions would mean that appreciation in the value of property held at death would never be subject to income tax or estate tax.

States that now have an estate tax would have to decide whether to follow the federal treatment. If a state chose to impose an estate tax beginning in 2023, it would need its own statute, since there would no longer be a federal statute to incorporate by reference. The form of such an estate tax would be subject to debate, and one can imagine legislators having strong views on deductions, credits and other critical considerations. One can also imagine that the next five years might see discussions in Congress as to whether to repeal the repeal of the estate tax. A cynic might say that a five-year deferral of repeal would amount to a ducking of the issue by Congress. The estate tax with the increased credit would affect only a tiny fraction of estates, i.e., those of the very wealthiest individuals. Proponents of estate tax repeal have, despite extensive efforts, failed to come up with a single example of a family farm or family business that was sold under distress circumstances because of the estate tax under present law. Their task would be even harder with the doubled transfer tax credit. It is likely that states will delay any decisions about repealing or modifying their estate taxes until closer to the effective date of federal repeal.

The Senate Bill would not repeal the estate and generation-skipping transfer taxes, but it would double the exclusion from $5 million to $10 million.

Business Tax Changes

The bills contain a number of business tax changes, some of which have received a considerable amount of publicity, and some of which have not.

Both bills provide new rules for deducting the cost of business property in the year of purchase. The bills would allow taxpayers to deduct the cost of qualified property in the year in which it is placed in service. This regime would be in effect until January 1, 2023, with an additional year for specific property with a longer production period.

The taxpayer would not have to be the first user of the property, although the taxpayer would have to be using the property for the first time. The new rules would apply to property acquired after September 27, 2017, which suggests that some heavy lobbying might have taken place by a taxpayer that acquired property after that date but before the date on which the Ways and Means Committee first released the House Bill. The change would be effected by amendments to the depreciation provisions of the IRC. Also, small business expensing under IRC section 179 would be expanded.

In the past, many states have not conformed to federal accelerated depreciation rules, reasoning that accelerated depreciation (that is, depreciation that is faster than economic depreciation) represented a federal subsidy that the states might not want to adopt. One hundred percent expensing of the cost of property is the ultimate form of accelerated depreciation, and it is quite likely that some states would choose not to adopt it. This will certainly be a subject of discussion in state legislatures.

Related to the expensing provision are proposed limitations on deducting interest. If companies could buy expensed property with borrowed funds and deduct the interest paid to the lender, they would arguably be realizing some form of double benefit. The House Bill would disallow deductions for net interest expenses in excess of 30 percent of the business's adjusted taxable income. The disallowance would be determined at the entity level—for example, at the partnership level rather than at the partner level. The disallowed interest would be carried forward to the succeeding five tax years, and special rules would be provided regarding owners of pass-through entities. The interest disallowance rules would not apply to specific regulated public utilities and real property businesses, and those businesses would not be able to fully expense their properties, reflecting the linkage between the interest disallowance rule and the expensing rule. Businesses with average gross receipts of $25 million or less would be exempt from the interest limitation rules.

The Senate Bill would limit the deduction of business interest to the sum of business interest income plus 30 percent of the taxpayer's adjusted taxable income for the taxable year. Disallowed interest could be carried forward indefinitely. The limitation would not apply to taxpayers whose gross receipts did not exceed $15 million or to real estate or utility businesses.

It would be important for state legislatures to keep in mind the linkage between expensing and the interest deduction disallowance. If a legislature chose not to adopt expensing, it should not adopt the interest disallowance. One hopes that legislatures will be sophisticated enough to recognize the linkage and act accordingly.

The House Bill would limit the use of net operating loss (NOL) deductions. Taxpayers would no longer be able to carry NOLs back to prior years, although there would be a special one-year carryback for small businesses and farms in case of specific casualty and disaster losses. NOL carryovers could be deducted only to the extent of 90 percent of the taxpayer's taxable income. NOLs could be carried forward indefinitely, not just for 20 years. These rules would apply to losses arising in tax years beginning after 2017. NOLs arising in post-2017 years and carried forward would be increased by an interest factor to preserve their value. The Senate Bill contains similar provisions. Many states have special NOL rules that depart from the federal rules, and those states would have to decide how to coordinate their rules with the federal rules.

The House Bill would include in a corporation's or partnership's income contributions to its capital to the extent that the amount of money and the fair market value of property so contributed exceeded the fair market value of any interest in the entity that was issued in exchange. State and local governments often use capital contributions to subsidize desired economic activity. A state that adopted the federal rule would in effect be undermining its own economic development policies, and states should seriously consider not adopting the federal change. The Senate Bill does not contain a comparable provision.

Employee Compensation

The original draft of the House Bill would have made a major change in the treatment of deferred compensation that is not provided under nondiscriminatory plans that qualify under IRC section 401(a). Effective regarding services performed after 2017, employees would be taxed on compensation under nonqualified arrangements as soon as there was no substantial risk of forfeiture regarding the compensation, even though it might not be paid until many years in the future. A substantial risk of forfeiture would not be deemed to exist solely because of a covenant not to compete. This provision was deleted during the Ways and Means Committee's mark-up, and a similar provision was not included in the Senate Bill. Many companies include deferred compensation as a significant element of employee pay packages, and this practice would have to be reconsidered if the provision were resurrected. State legislatures might conclude that taxing a person on income before it is received is unfair, and it is possible that some states would decide to decouple from this provision.

Other changes in the House Bill involve the taxation of compensation paid to high-earning individuals. Under present law, a corporation generally cannot deduct compensation paid to an individual in excess of $1 million per year. The limit does not apply to specific performance-based pay, including stock options and commissions. The House Bill would repeal the exception for performance-based compensation. The provision, now in IRC section 162(m), does not make much sense economically, because section 162(a) disallows deductions for compensation that is not reasonable in relation to the value of the services performed. Thus, section 162(m) applies only to compensation that is reasonable. Still, states are unlikely to reject its expanded application, since politically the compensation in question goes to highly paid individuals who are not high on the list of people that state legislatures want to protect.

A related change in both bills would impose an excise tax on a tax-exempt organization equal to 20 percent of compensation in excess of $1 million paid to any of its five highest-paid employees. Again, this would apply to compensation that is reasonable in amount. As an excise tax, this would not automatically be incorporated in the laws of states that base taxable income on federal taxable income, but it would not be surprising to see some groups urge state legislatures to adopt similar provisions.

International Business

The bills contain a number of provisions on the taxation of international business operations. Both bills would exempt from tax foreign-source dividends received from foreign subsidiaries in which a US taxpayer owned at least a 10 percent stock interest. This exemption would also apply to transfers from controlled foreign corporations of previously untaxed income that would be taxable under present law under IRC section 956. The states likely would not decouple from this provision, although it is certainly possible that some states would decide that they don't want to provide a similar exemption. One hopes that state legislatures will not depart from the federal regime, because doing so would undermine national tax policy aimed at rationalizing the taxation of international business operations and increasing the United States' competitiveness in world markets.

The House Bill would impose a transition tax on currently accumulated foreign earnings under a deemed repatriation model. Under the Senate Bill, the tax would be 12 percent on earnings considered as being held in the form of cash or cash equivalents, and 5 percent on other earnings. Under the House Bill, the tax would be 14 percent and 7 percent, respectively. There would be an anti-abuse rule designed to prevent manipulation of earnings and cash amounts. States might decide to impose their own transition tax to mirror the federal treatment.

A new 20 percent excise tax would be imposed on deductible payments (other than interest) by US taxpayers to related foreign parties (including, for example, most service fees, royalties and payments includable in cost of goods sold or depreciable or amortizable basis) unless the related party elected to treat the payment as income that is effectively connected to US business that would be subject to US income tax. This liability would not automatically pass through to the states, because it would not affect the computation of federal taxable income. One hopes that states will not jump aboard the bandwagon and impose their own excise taxes on the same transactions.

The bills would limit the ability of a US taxpayer to deduct its net interest expenses if its share of its worldwide group's net interest expenses was more than 110 percent of its share of the group's earnings before certain deductions. This provision would be coordinated with the general 30 percent limit on deducting interest, and seems like an attempt to address the problems with which the US Department of Treasury was concerned when it proposed debt-equity regulations under IRC section 385.

A minimum tax on foreign earnings in excess of routine earnings would be imposed at a 10 percent rate, subject to a reduced foreign tax credit. Here, too, states should resist the temptation to impose a similar additional tax.

Tax-Exempt Organizations

The bills contain a number of provisions affecting tax-exempt organizations. Current law imposes a tax on the income of exempt organizations that is unrelated to their exempt functions (the unrelated business income tax, or UBIT). Colleges and universities that are agencies or instrumentalities of state governments or their political subdivisions are subject to the UBIT, but it is unclear whether some other state and local entities, such as public pension plans, are subject to the tax. The bills would extend the tax to them.

Many states have their own UBITs and might choose to follow the federal extension. On the other hand, states might be reluctant to tax their pension plans and those of their political subdivisions, and state legislatures will have to decide how to address this issue.

Under current law, income from research performed for the United States or any state or political subdivision, or by a college, university or hospital for any person, is exempt from the UBIT. The House Bill would require as a condition of the exemption that the research be made available to the public at no charge. This significant policy change would affect research done for the benefit of private parties that arguably would be used in connection with commercial activities. States would have to decide whether to make similar changes to their UBITs.

Private charitable foundations are subject to a 2 percent excise tax on net investment income. Foundations can reduce the tax to 1 percent by making distributions equal to the average of their distributions for the previous five years plus 1 percent. The bills would replace this regime with a single tax of 1.4 percent that would not be reduced by distributions. Under current law, the tax does not apply to the investment income of public charities, including colleges and universities. The bills would subject large private colleges and universities to a 1.4 percent excise tax on their net investment income. This tax would apply only to private colleges and universities that have at least 500 students and assets (other than those used directly in carrying out educational purposes) of at least $250,000 per full-time student, as valued at the close of the preceding tax year. This provision undoubtedly will be subject to extensive lobbying at the federal level. The size of the endowments of some leading universities has been publicized in recent years, and some states might decide to impose a similar tax on their investment income.


As indicated previously, the federal tax reform legislation is very much a work in progress, and its final form will be affected by political considerations and lobbying by interested parties. SALT practitioners should monitor the progress of the legislation and contact state tax administrators and legislative bodies as appropriate.

SALT Implications Of The House And Senate Tax Reform Bill

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Proskauer Rose LLP
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Proskauer Rose LLP
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions