§5000C — Imposition of tax on certain foreign procurement

Statute Text — 26 U.S.C. §5000C

(a)Imposition of tax

There is hereby imposed on any foreign person that receives a specified Federal procurement payment a tax equal to 2 percent of the amount of such specified Federal procurement payment.

(b)Specified Federal procurement payment

For purposes of this section, the term “specified Federal procurement payment” means any payment made pursuant to a contract with the Government of the United States for—

(1)

the provision of goods, if such goods are manufactured or produced in any country which is not a party to an international procurement agreement with the United States, or

(2)

the provision of services, if such services are provided in any country which is not a party to an international procurement agreement with the United States.

(c)Foreign person

For purposes of this section, the term “foreign person” means any person other than a United States person.

(d)Administrative provisions

(1)Withholding

The amount deducted and withheld under chapter 3 shall be increased by the amount of tax imposed by this section on such payment.

(2)Other administrative provisions

For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.

Treasury Regulations

Treas. Reg. §Treas. Reg. §1.5000C-0 Outline of regulation provisions for section 5000C
Treas. Reg. §Treas. Reg. §1.5000C-0(a) In general.
Treas. Reg. §Treas. Reg. §1.5000C-0(b) Tax obligation of foreign contracting party independent of withholding.
Treas. Reg. §Treas. Reg. §1.5000C-0(c) Return of tax by the foreign contracting party.
Treas. Reg. §Treas. Reg. §1.5000C-0(d) Time and manner of paying tax.
Treas. Reg. §Treas. Reg. §1.5000C-0(e) Refund requests when amount withheld exceeds tax liability.
Treas. Reg. §Treas. Reg. §1.5000C-1 Tax on specified Federal procurement payments
Treas. Reg. §Treas. Reg. §1.5000C-1(a) Overview.
Treas. Reg. §Treas. Reg. §1.5000C-1(b) Imposition of tax.
Treas. Reg. §Treas. Reg. §1.5000C-1(c) Definitions.
Treas. Reg. §Treas. Reg. §1.5000C-1(d) Exemptions.
Treas. Reg. §Treas. Reg. §1.5000C-1(e) §1.5000C-1(e)
Treas. Reg. §Treas. Reg. §1.5000C-1(i) §1.5000C-1(i)
Treas. Reg. §Treas. Reg. §1.5000C-2 Withholding on specified Federal procurement payments
Treas. Reg. §Treas. Reg. §1.5000C-2(a) In general.
Treas. Reg. §Treas. Reg. §1.5000C-2(b) Steps in determining the obligation to withhold under section 5000C.
Treas. Reg. §Treas. Reg. §1.5000C-2(c) Determining whether the contracting party is a U.
Treas. Reg. §Treas. Reg. §1.5000C-2(d) Withholding when a foreign contracting party submits a Section 5000C Certificate—(1) In general.
Treas. Reg. §Treas. Reg. §1.5000C-2(e) Offset for underwithholding or overwithholding—(1) In general.
Treas. Reg. §Treas. Reg. §1.5000C-3 Payment and returns of tax withheld by the acquiring agency
Treas. Reg. §Treas. Reg. §1.5000C-3(a) In general.
Treas. Reg. §Treas. Reg. §1.5000C-3(b) Deposit rules—(1) Acquiring agency with a chapter 3 deposit requirement treats amounts withheld as under chapter 3.
Treas. Reg. §Treas. Reg. §1.5000C-3(c) Return requirements—(1) In general.
Treas. Reg. §Treas. Reg. §1.5000C-3(d) Special arrangement for certain contracts.
Treas. Reg. §Treas. Reg. §1.5000C-4 Requirement for the foreign contracting party to file a return and pay tax, and procedures for the contracting party to seek a refund

0 Citing Cases

No citing cases found in the corpus.