Us Code § 5000C - Imposition of tax on certain foreign procurement
Full text of Us Code United States Code § 5000C — Imposition of tax on certain foreign procurement, with citation guidance and answers to common questions.
§ 5000C. Imposition of tax on certain foreign procurement
(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.
(Added Pub. L. 111–347, title III, §301(a)(1), Jan. 2, 2011, 124 Stat. 3666.)
Statutory Notes and Related Subsidiaries
Effective Date
Pub. L. 111–347, title III, §301(a)(3), Jan. 2, 2011, 124 Stat. 3666, provided that: "The amendments made by this subsection [enacting this section] shall apply to payments received pursuant to contracts entered into on and after the date of the enactment of this Act [Jan. 2, 2011]."
Prohibition on Reimbursement of Fees
Pub. L. 111–347, title III, §301(b), Jan. 2, 2011, 124 Stat. 3666, provided that:
"(1)
"(2)
"(3)
Application
Pub. L. 111–347, title III, §301(c), Jan. 2, 2011, 124 Stat. 3666, provided that: "This section [enacting this section and provisions set out as notes under this section] and the amendments made by this section shall be applied in a manner consistent with United States obligations under international agreements."
CHAPTER 50A—DESIGNATED DRUGS
About This Section
26 U.S.C. § 5000C is part of Title 26 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
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