What is FAR 52.229-7?

FAR 52.229-7 (Taxes—Fixed-Price Contracts With Foreign Governments.) is a federal acquisition regulation clause that may be included in government contracts. It falls under the taxes category.

When is FAR 52.229-7 required?

FAR 52.229-7 is typically required when the contracting officer determines it's applicable to the specific procurement. Check the solicitation's Section I for included clauses.

Does FAR 52.229-7 flow down to subcontractors?

Whether FAR 52.229-7 flows down depends on the specific clause language and contract type. Review the clause text for flow-down provisions.

Low RiskFARtaxes

52.229-7 — Taxes—Fixed-Price Contracts With Foreign Governments.

Last updated: 2026-04

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.229-7 — Taxes—Fixed-Price Contracts With Foreign Governments.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

Official Regulation Text

52.229-7 Taxes—Fixed-Price Contracts With Foreign Governments. As prescribed in 29.402-1(b), insert the following clause: Taxes—Fixed—Price Contracts With Foreign Governments (FEB 2013) (a) Contract date, as used in this clause, means the date set for bid opening or, if this is a negotiated contract or a modification, the effective date of this contract or modification. (b)(1) The contract price, including the prices in any subcontracts under this contract, does not include any tax or duty that the Government of the United States and the Government of ____ [ insert name of the foreign government ] have agreed shall not apply to expenditures made by the United States in ____ [ insert name of country ], or any tax or duty not applicable to this contract or any subcontracts under this contract, pursuant to the laws of ____ [ insert name of country ]. If any such tax or duty has been included in the contract price, through error or otherwise, the contract price shall be correspondingly reduced. (2) Taxes imposed under 26 U.S.C. 5000C may not be included in the contract price. (c) If, after the contract date, the Government of the United States and the Government of ____ [ insert name of the foreign government ] agree that any tax or duty included in the contract price shall not apply to expenditures by the United States in ____ [ insert name of country ], the contract price shall be reduced accordingly. (d) No adjustment shall be made in the contract price under this clause unless the amount of the adjustment exceeds $250. (End of clause) [48 FR 42478, Sept. 19, 1983, as amended at 55 FR 52799, Dec. 21, 1990; 78 FR 6191, Jan. 29, 2013; 78 FR 13769, Feb. 28, 2013]
Source: eCFR, 48 CFR 52.229-7 (https://www.ecfr.gov/current/title-48/section-52.229-7)

Compliance Checklist

(b)(1) The contract price, including the prices in any subcontracts under this contract, does not include any tax or duty that the Government of the United States and the Government of ____ [ insert name of the foreign government ] have agreed shall not apply to expenditures made by the United States in ____ [ insert name of country ], or any tax or duty not applicable to this contract or any subcontracts under this contract, pursuant to the laws of ____ [ insert name of country ].
If any such tax or duty has been included in the contract price, through error or otherwise, the contract price shall be correspondingly reduced.
(c) If, after the contract date, the Government of the United States and the Government of ____ [ insert name of the foreign government ] agree that any tax or duty included in the contract price shall not apply to expenditures by the United States in ____ [ insert name of country ], the contract price shall be reduced accordingly.
(d) No adjustment shall be made in the contract price under this clause unless the amount of the adjustment exceeds $250.

Flow-Down to Subcontractors

Flow-down required

This clause must be included in subcontracts with no subcontractors where the subcontractor will perform work covered by this clause. Typically appears in contract Section Section I.

Frequently Asked Questions

BidStride automatically scans your RFPs for 52.229-7

Stop hunting through solicitations manually. BidStride identifies every FAR and DFARS clause in your RFP, flags risk level, and surfaces compliance requirements before you submit your bid.

This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.