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ripe-625: ripe-322: This document provides additional information on the RIPE NCC Clearing House Procedure and should be read in conjunction with the RIPE NCC Standard Terms and Conditions. The RIPE NCC Standard Terms and Conditions and the RIPE NCC Standard Service Agreement will be authoritative over this document.
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Table of Contents insert: </p>

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insert: <a name="1"> insert: </a> 1. Introduction insert: </h3>

This document provides additional information on the RIPE NCC Clearing House and should be read in conjunction with the delete: <a class="external-link" title="" href="http://www.ripe.net/publications/docs/service-agreement" target="_self"> RIPE NCC Standard Service Agreement delete: </a> . The Terms and Conditions. The RIPE NCC Standard Terms and Conditions and the RIPE NCC Standard Service Agreement will be authoritative over this document.

The RIPE NCC is a not-for-profit organisation. Nevertheless, a positive or negative financial result can be achieved in a particular year. The In principle, this would be subject to Corporate Income tax. However, the RIPE NCC has set up an arrangement special arrangements with the Dutch tax authorities that each year the membership decides on how to allocate the surplus or deficit. The to move any surplus or deficit can either to accumulate in a special reserve or it can be redistributed to the Members. “special” reserve. This special “special” reserve, known as the Clearing House, gives the RIPE NCC a stable financial position to operate soundly and continuously.

The Clearing House structure Dutch tax authorities have set a maximum to this reserve. To avoid any taxation or payout from the Clearing House, the RIPE NCC Board and the RIPE NCC Management aim to stay within this set boundary. insert: </p>

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The Clearing House procedure was approved by the Dutch tax authorities in 1998 and was has been amended in 2003 and again in 2014. The Clearing House 2003. The Clearing House procedure started with the 1998 financial year.

The RIPE NCC Executive Board reserves reserve the right to make changes, in accordance with Dutch tax law, to this procedure as necessary.

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insert: <a name="2"> insert: </a> 2. Clearing House Procedure delete: </h2> – General Information insert: </h3>

The Clearing House procedure has been developed to comply with the Dutch tax ruling describing how to redistribute an amount excess amount to the RIPE NCC Contributors. A RIPE NCC Contributor is defined as a natural person or legal entity that receives services from the RIPE NCC Clearing House to the RIPE NCC Members. and has been invoiced a service fee for the year at issue. The Clearing House may equal a maximum of three times the total amount of RIPE NCC service fees in the relevant financial year as stated in the audited financial report. This income excludes the sign-up fee and any other Service fees or payments made to the RIPE NCC that are not stipulated by the RIPE NCC Standard Service Agreement and the RIPE NCC Standard Terms and Conditions.

Only Members Contributors that have fulfilled their financial obligations towards the RIPE NCC in the relevant financial year can participate in the Clearing House procedure. If, If during the year, year the RIPE NCC Standard Service Agreement has been terminated by either party no participation in the Clearing House procedure will take place. insert: </p>

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insert: <a name="3"> insert: </a> 3. Clearing House Procedure insert: </h3>

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The surplus or deficit that results from the audited financial statements of the financial year will be transferred to the Clearing House. The accumulated amounts will be reserved in the Clearing House. In case this total amount exceeds a total of three times the income from the Contributors Service fees of the financial year at issue, the RIPE NCC will redistribute the excess amount from the Clearing House to the Contributors. insert: </p>

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insert: <a name="31"> insert: </a> 3.1 Redistribution from the Clearing House insert: </h4>

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The Contributor's share of the excess amount will be equal to the percentage of its fee contribution to the service fees paid to the RIPE NCC over the past 3 years, including the relevant financial year in which the Clearing House exceeded the maximum. insert: </p>

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A Contributor's percent share of the total paid fees is calculated by dividing that Contributor's paid fee by the total of all other Contributors' paid fees for the past 3 years. insert: </p>

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This excess amount will not actually be paid out but will be credited to the Contributor's account and will be deducted from the Service fee for the year after the Clearing House procedure has taken place. In case of termination of the RIPE NCC Standard Service Agreement the excess amount payable will not be redistributed. insert: </p>

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insert: <a name="32"> insert: </a> 3.2 Timeline of Clearing House Procedure insert: </h4>

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The Clearing House procedure will take place within 90 days of receipt of the audited financial statements. The settlement for the excess amount will be done with the invoices for the year following the year in which the Clearing House procedure has taken place. insert: </p>

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insert: <a name="4"> insert: </a> 4 Changes in Contributor Status insert: </h3>

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insert: <a name="41"> insert: </a> 4.1 Closing and/or Default of a Contributor insert: </h4>

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If during the year the RIPE NCC Standard Service Agreement has been terminated by either party, no participation in the Clearing House procedure will take place. delete: </p> delete: <p> Each year at the autumn General Meeting (GM), based on the estimated year end result provided by the RIPE NCC Executive Board and Management, the General Meeting will decide on whether to add or subtract the year's financial result to the Clearing House or to redistribute the year's financial result to the Members. delete: </p> any excess amounts payable to the Contributor will remain in the Clearing House. insert: </p>

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insert: <a name="42"> insert: </a> 4.2 Merging of Two Contributors insert: </h4>

In addition to the annual decision by the General Meeting, the Executive Board can propose to the General Meeting to redistribute a one-off amount from the Clearing House to the Membership. The General Meeting will have the right to approve or disapprove this redistribution from the Clearing House to the Members. delete: </p> delete: <h2> 3. Redistribution from the Clearing House delete: </h2> delete: <p> The Member's share of the annual decision for an amount to be redistributed from the Clearing House will be equal to the percentage of its fee contribution to the service fees paid to the RIPE NCC over the relevant financial year. A Member's share of the total paid fees is calculated by dividing that Member's paid fee by the total of all other Members' paid fees for the relevant financial year. delete: </p> delete: <p> If the General Meeting decides on a one-off amount to be redistributed from the Clearing House, the Member's share of the excess amount will be equal to the percentage of its fee contribution to the service fees paid to the RIPE NCC over the past three years, including the relevant financial year. A Member's share of the total paid fees is calculated by dividing that Member's paid fee by the total of all other Members' paid fees for the past three years. delete: </p> delete: <p> The Member's share of the amount to be redistributed will not actually be paid out but will be credited to the Member's account and will be deducted from the service fee for the year after the General Meeting has decided on the redistribution. If a Member's RIPE NCC Standard Service Agreement is terminated before the redistribution takes place, this share will not be redistributed and will remain in the Clearing House. delete: </p> delete: <p> In the case of a merger between two or more Members, the remaining Member's Contributors, the fee contribution is considered to will be the total amount paid by the merged Members two registries for the relevant financial year(s). year at issue. In the case of a Clearing House redistribution, Clearing House redistribution they will then receive a percentage reflecting the total amount paid.

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insert: <a name="43"> insert: </a> 4.3 Changes in Billing Size insert: </h4>

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Changes in billing size during the year at issue have no impact on the Clearing House redistribution of the excess amount as the fee paid by the Contributor determines the amount that will be settled. insert: </p>

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