FAR 52.229-8 - Taxes - Foreign Cost-Reimbursement Contracts

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Prescribed in 29.402-2(a)
Effective Date:	1 March 1990
Clause or Provision:	Clause
Provision or Clause Number:	52.229-8 - Taxes - Foreign Cost-Reimbursement Contracts
Principle Type And/Or Purpose of Contract:
Required:
Applicable:	Facilities; Architect-Engineering; Dismantling, Demolition or Removal of Improvements; Cost Reimbursement, Supply; Communication Services; Leasing of Motor Vehicles; Cost Reimbursement, Construction; Cost Reimbursement, Service; Cost Reimbursement, R&D; Indefinite Delivery; Transportation
Optional:	Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Fixed Price, Construction; Time & Material/Labor Hour; Fixed Price, Service
Subject:	Taxes"Taxes" is not in the list (Commercial Item, Independent Price Determination, Hotline Posters, Whistleblower Protection, Contingent Fees, Specifications/Standards, Leased Vehicles and Equipment, Payments to Influence Certain Federal Transactions, Contracts, Representations and Certifications, Executive Compensation, ...) of allowed values for the "CCSubject" property.
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription (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.
Clause Overview:	Clause (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. Code) 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.
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:	I
Editor:	Marshall

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Personal notes.