RFO
RFO Version Available
The Revolutionary FAR Overhaul has published a revised version of this clause. The RFO version supersedes the eCFR text below for contracts using the RFO model; see the RFO deviation for applicability.
View RFO version52.229-7 Taxes—Fixed-Price Contracts With Foreign Governments. As prescribed in 29.402-1(b), insert the following clause: Taxes—Fixed—Price Contracts With Foreign Governments (FEB 2013) (a) Contract date, as used in this clause, means the date set for bid opening or, if this is a negotiated contract or a modification, the effective date of this contract or modification. (b)(1) The contract price, including the prices in any subcontracts under this contract, does not include any tax or duty that the Government of the United States and the Government of ____ [ insert name of the foreign government ] have agreed shall not apply to expenditures made by the United States in ____ [ insert name of country ], or any tax or duty not applicable to this contract or any subcontracts under this contract, pursuant to the laws of ____ [ insert name of country ]. If any such tax or duty has been included in the contract price, through error or otherwise, the contract price shall be correspondingly reduced. (2) Taxes imposed under 26 U.S.C. 5000C may not be included in the contract price. (c) If, after the contract date, the Government of the United States and the Government of ____ [ insert name of the foreign government ] agree that any tax or duty included in the contract price shall not apply to expenditures by the United States in ____ [ insert name of country ], the contract price shall be reduced accordingly. (d) No adjustment shall be made in the contract price under this clause unless the amount of the adjustment exceeds $250. (End of clause) [48 FR 42478, Sept. 19, 1983, as amended at 55 FR 52799, Dec. 21, 1990; 78 FR 6191, Jan. 29, 2013; 78 FR 13769, Feb. 28, 2013]
29.402-1(b)
(b) The contracting officer shall insert the clause at 52.229-7, Taxes-Fixed-Price Contracts with Foreign Governments, in solicitations and contracts that exceed the simplified acquisition threshold when a fixed-price contract with a foreign government is contemplated.
Prescription data sourced from eCFR as of 2026-06-10 03:16 UTC.
Cross-references within the prescription are not resolved automatically.
Regulatory Stack
The layers of regulation that govern this clause, from the FAR prescription through agency-specific supplements and any active deviations.
RFO
RFO Version
Overhauled clause text
The Revolutionary FAR Overhaul publishes a revised version of this clause. See the RFO Version tab for the controlling authority under the RFO model.
FAR
FAR Prescription
29.402-1(b)
(b) The contracting officer shall insert the clause at 52.229-7, Taxes-Fixed-Price Contracts with Foreign Governments, in solicitations and contracts that exceed the simplified acquisition threshold when a fixed-price contract with a foreign government is contemplated.
Version History
Version history is sourced from the codified eCFR. Changes published only as class deviations or by the Revolutionary FAR Overhaul do not appear here until they are incorporated into the eCFR. For RFO-driven changes see the RFO Version tab and any active deviations cited above.
2 versions tracked from 2017-01-01 to 2018-01-24.
JAN 2018
January 24, 2018
CURRENT
Removed in this version
Added in this version
Unchanged
JAN 2017 (previous)
JAN 2018 (current)
3 added, 3 removed
(b)(1)
(b)(1) The contract price, including the prices in any subcontracts under this contract, does not include any tax or duty that the Government of the United States and the Government of __ [insert name of the foreign government] have agreed shall not apply to expenditures made by the United States in __ [insert name of country], or any tax or duty not applicable to this contract or any subcontracts under this contract, pursuant to the laws of __ [insert name of country]. If any such tax or duty has been included in the contract price, through error or otherwise, the contract price shall be correspondingly reduced.
(b)(1)
(b)(1) The contract price, including the prices in any subcontracts under this contract, does not include any tax or duty that the Government of the United States and the Government of ____ [insert name of the foreign government] have agreed shall not apply to expenditures made by the United States in ____ [insert name of country], or any tax or duty not applicable to this contract or any subcontracts under this contract, pursuant to the laws of ____ [insert name of country]. If any such tax or duty has been included in the contract price, through error or otherwise, the contract price shall be correspondingly reduced.
2 added, 2 removed
(c)
(c) If, after the contract date, the Government of the United States and the Government of __ [insert name of the foreign government] agree that any tax or duty included in the contract price shall not apply to expenditures by the United States in __ [insert name of country], the contract price shall be reduced accordingly.
(c)
(c) If, after the contract date, the Government of the United States and the Government of ____ [insert name of the foreign government] agree that any tax or duty included in the contract price shall not apply to expenditures by the United States in ____ [insert name of country], the contract price shall be reduced accordingly.
JAN 2017
January 1, 2017
SUBSTANTIVE
Earliest version available from the eCFR
RFO Version
Comparison of the codified eCFR text against the Revolutionary FAR Overhaul revision. Highlights show additions (green) and deletions (red, struck through).
Clause Text
Substantive changes. The RFO version differs materially from the eCFR text.
eCFR (codified)
RFO (implemented)
Unchanged
52.229-7 Taxes-Fixed-Price Contracts with Foreign Governments.
eCFR (codified)
RFO (implemented)
2 added, 3 removed
Taxes—Fixed—Price Contracts With Foreign Governments (FEB 2013)
Taxes-Fixed-Price Contracts with Foreign Governments (Date)
2 added, 2 removed
(a)
(a) Contract date, as used in this clause, means the date set for bid opening or, if this is a negotiated contract or a modification, the effective date of this contract or modification.
(a)
(a) "Contract date," as used in this clause, means the date set for bid opening or, if this is a negotiated contract or a modification, the effective date of this contract or modification.
1 added, 106 removed
(b)(1)
(b)(1) The contract price, including the prices in any subcontracts under this contract, does not include any tax or duty that the Government of the United States and the Government of ____ [insert name of the foreign government] have agreed shall not apply to expenditures made by the United States in ____ [insert name of country], or any tax or duty not applicable to this contract or any subcontracts under this contract, pursuant to the laws of ____ [insert name of country]. If any such tax or duty has been included in the contract price, through error or otherwise, the contract price shall be correspondingly reduced.
(b)(1)
(b)
106 added
(1)
(1)
(1) The contract price, including the prices in any subcontracts under this contract, does not include any tax or duty that the Government of the United States and the Government of ______ [insert name of the foreign government] have agreed shall not apply to expenditures made by the United States in ______ [insert name of country], or any tax or duty not applicable to this contract or any subcontracts under this contract, pursuant to the laws of ______ [insert name of country]. If any such tax or duty has been included in the contract price, through error or otherwise, the contract price shall be correspondingly reduced.
10 added, 5 removed
(c)
(c) If, after the contract date, the Government of the United States and the Government of ____ [insert name of the foreign government] agree that any tax or duty included in the contract price shall not apply to expenditures by the United States in ____ [insert name of country], the contract price shall be reduced accordingly.
(c)
(c) If, after the contract date, the Government of the United States and the Government of ______ [insert name of the foreign government] agree that any tax or duty included in the contract price shall not apply to expenditures by the United States in ________ [insert name of country], the Government of the United States will reduce the contract price accordingly.
9 added, 6 removed
(d)
(d) No adjustment shall be made in the contract price under this clause unless the amount of the adjustment exceeds $250.
(d)
(d) The Government of the United States will not adjust the contract price under this clause unless the amount of the adjustment exceeds $250.
27 removed
[48 FR 42478, Sept. 19, 1983, as amended at 55 FR 52799, Dec. 21, 1990; 78 FR 6191, Jan. 29, 2013; 78 FR 13769, Feb. 28, 2013]
Prescription
Substantive changes. The RFO prescription differs materially from the eCFR prescription.
eCFR (codified)
RFO (implemented)
Unchanged
52.229-7 Taxes-Fixed-Price Contracts with Foreign Governments.: Prescription
eCFR (codified)
RFO (implemented)
2 added, 7 removed
(b)
(b) The contracting officer shall insert the clause at 52.229-7, Taxes-Fixed-Price Contracts with Foreign Governments, in solicitations and contracts that exceed the simplified acquisition threshold when a fixed-price contract with a foreign government is contemplated.
(b)
(b) Insert the clause at 52.229-7, Taxes-Fixed-Price Contracts with Foreign Governments, in solicitations and contracts that exceed the simplified acquisition threshold when planning a fixed-price contract with a foreign government.
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