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 version52.229-8 Taxes—Foreign Cost-Reimbursement Contracts. As prescribed in 29.402-2(a), insert the following clause: Taxes—Foreign Cost-Reimbursement Contracts (MAR 1990) (a) Any tax or duty from which the United States Government is exempt by agreement with the Government of ____ [ insert name of the foreign government ], or from which the Contractor or any subcontractor under this contract is exempt under the laws of ____ [ insert name of country ], shall not constitute an allowable cost under this contract. (b) If the Contractor or subcontractor under this contract obtains a foreign tax credit that reduces its Federal income tax liability under the United States Internal Revenue Code (Title 26, U.S.C.) because of the payment of any tax or duty that was reimbursed under this contract, the amount of the reduction shall be paid or credited at the time of such offset to the Government of the United States as the Contracting Officer directs. (End of clause) [48 FR 42478, Sept. 19, 1983, as amended at 55 FR 3889, Feb. 5, 1990]
29.402-2(a)
(a) The contracting officer shall insert the clause at 52.229-8, Taxes-Foreign Cost-Reimbursement Contracts, in solicitations and contracts when a cost-reimbursement contract is contemplated and the contract is to be performed wholly or partly in a foreign country, unless it is contemplated that the contract will be with a foreign government.
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
29.402-2(a)
(a) The contracting officer shall insert the clause at 52.229-8, Taxes-Foreign Cost-Reimbursement Contracts, in solicitations and contracts when a cost-reimbursement contract is contemplated and the contract is to be performed wholly or partly in a foreign country, unless it is contemplated that the contract will be with a foreign government.
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)
2 added, 2 removed
(a)
(a) Any tax or duty from which the United States Government is exempt by agreement with the Government of __ [insert name of the foreign government], or from which the Contractor or any subcontractor under this contract is exempt under the laws of __ [insert name of country], shall not constitute an allowable cost under this contract.
(a)
(a) Any tax or duty from which the United States Government is exempt by agreement with the Government of ____ [insert name of the foreign government], or from which the Contractor or any subcontractor under this contract is exempt under the laws of ____ [insert name of country], shall not constitute an allowable cost under this contract.
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
52.229-8 Taxes-Foreign Cost-Reimbursement Contracts.
eCFR (codified)
RFO (implemented)
2 added, 3 removed
Taxes—Foreign Cost-Reimbursement Contracts (MAR 1990)
Taxes-Foreign Cost-Reimbursement Contracts (Date)
2 added, 2 removed
(a)
(a) Any tax or duty from which the United States Government is exempt by agreement with the Government of ____ [insert name of the foreign government], or from which the Contractor or any subcontractor under this contract is exempt under the laws of ____ [insert name of country], shall not constitute an allowable cost under this contract.
(a)
(a) Any tax or duty from which the United States Government is exempt by agreement with the Government of ______ [insert name of the foreign government], or from which the Contractor or any subcontractor under this contract is exempt under the laws of ______ [insert name of country], shall not constitute an allowable cost under this contract.
8 added, 6 removed
(b)
(b) If the Contractor or subcontractor under this contract obtains a foreign tax credit that reduces its Federal income tax liability under the United States Internal Revenue Code (Title 26, U.S.C.) because of the payment of any tax or duty that was reimbursed under this contract, the amount of the reduction shall be paid or credited at the time of such offset to the Government of the United States as the Contracting Officer directs.
(b)
(b) If the Contractor or subcontractor under this contract obtains a foreign tax credit that reduces its Federal income tax liability under the United States Internal Revenue Code (Title 26, U.S. Code) because of the payment of any tax or duty that was reimbursed under this contract, the Contractor shall pay or credit the amount of the reduction at the time of such offset to the Government of the United States as the Contracting Officer directs.
15 removed
[48 FR 42478, Sept. 19, 1983, as amended at 55 FR 3889, Feb. 5, 1990]
Prescription
Substantive changes. The RFO prescription differs materially from the eCFR prescription.
eCFR (codified)
RFO (implemented)
Unchanged
52.229-8 Taxes-Foreign Cost-Reimbursement Contracts.: Prescription
eCFR (codified)
RFO (implemented)
1 added, 14 removed
(a)
(a) The contracting officer shall insert the clause at 52.229-8, Taxes-Foreign Cost-Reimbursement Contracts, in solicitations and contracts when a cost-reimbursement contract is contemplated and the contract is to be performed wholly or partly in a foreign country, unless it is contemplated that the contract will be with a foreign government.
(a)
(a) Insert the clause at 52.229-8, Taxes-Foreign Cost-Reimbursement Contracts, in solicitations and contracts when planning a cost-reimbursement contract to be performed wholly or partly in a foreign country, unless the contract will be with a foreign government.
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