What is FAR 52.229-9?

FAR 52.229-9 (Taxes—Cost-Reimbursement 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 52.229-9 required?

FAR 52.229-9 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 52.229-9 flow down to subcontractors?

Whether FAR 52.229-9 flows down depends on the specific clause language and contract type. Review the clause text for flow-down provisions.

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52.229-9 — Taxes—Cost-Reimbursement Contracts With Foreign Governments.

Last updated: 2026-04

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.229-9 — Taxes—Cost-Reimbursement 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

52.229-9 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]
Source: eCFR, 48 CFR 52.229-9 (https://www.ecfr.gov/current/title-48/section-52.229-9)

Compliance Checklist

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.

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

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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.