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 version52.229-9 Taxes—Cost-Reimbursement Contracts With Foreign Governments. As prescribed in 29.402-2(b), insert the following clause: Taxes—Cost-Reimbursement Contracts With Foreign Governments (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 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 any subcontractor 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 (not credited to the contract) to the Treasurer of the United States at the time the Federal income tax return is filed. (End of clause) [48 FR 42478, Sept. 19, 1983, as amended at 55 FR 3889, Feb. 5, 1990]
29.402-2(b)
(b) The contracting officer shall insert the clause at 52.229-9, Taxes-Cost-Reimbursement Contracts with Foreign Governments, in solicitations and contracts when a cost-reimbursement 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
29.402-2(b)
(b) The contracting officer shall insert the clause at 52.229-9, Taxes-Cost-Reimbursement Contracts with Foreign Governments, in solicitations and contracts when a cost-reimbursement 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)
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 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 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
52.229-9 Taxes-Cost-Reimbursement Contracts with Foreign Governments.
eCFR (codified)
RFO (implemented)
2 added, 3 removed
Taxes—Cost-Reimbursement Contracts With Foreign Governments (MAR 1990)
Taxes-Cost-Reimbursement Contracts with Foreign Governments (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 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 any subcontractor under this contract is exempt under the laws of ______ [insert name of country], shall not constitute an allowable cost under this contract.
11 added, 9 removed
(b)
(b) If any subcontractor 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 (not credited to the contract) to the Treasurer of the United States at the time the Federal income tax return is filed.
(b)
(b) If any subcontractor 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 subcontractor shall pay (not credit to the contract) the amount of the reduction to the Treasurer of the United States at the time the Federal income tax return is filed.
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
52.229-9 Taxes-Cost-Reimbursement Contracts with Foreign Governments.: Prescription
eCFR (codified)
RFO (implemented)
2 added, 7 removed
(b)
(b) The contracting officer shall insert the clause at 52.229-9, Taxes-Cost-Reimbursement Contracts with Foreign Governments, in solicitations and contracts when a cost-reimbursement contract with a foreign government is contemplated.
(b)
(b) Insert the clause at 52.229-9, Taxes-Cost-Reimbursement Contracts with Foreign Governments, in solicitations and contracts when planning a cost-reimbursement contract with a foreign government.
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