FAR 52.229-9 - Taxes - Cost-Reimbursement Contracts with Foreign Governments

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Prescribed in 29.402-2(b)
Effective Date:	1 March 1990
Clause or Provision:	Clause
Provision or Clause Number:	52.229-9 - Taxes - Cost-Reimbursement Contracts with Foreign Governments
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 (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.
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 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. Code) 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.
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:	I
Editor:	Marshall

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Personal notes.