52.229-8 Taxes—Foreign Cost-Reimbursement Contracts.
Prescription and Applicability
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.
Current Text
52.229-8 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]
Suggested Questions
You can ask your AI assistant:
- Should I include this provision in my solicitation?
- Does this clause apply to commercial acquisitions?
- Does this clause apply to R&D contracts under Part 35?
- Which alternate should I use for a multiple-award contract?
- Are there any active Class Deviations that modify this clause?
- What changed in the most recent amendment?