52.229-9 Taxes—Cost-Reimbursement Contracts With Foreign Governments.
Prescription and Applicability
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.
Current Text
52.229-9 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]
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?