26 USC 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
Terms Used In 26 USC 5000C
- Contract: A legal written agreement that becomes binding when signed.
- foreign: when applied to a corporation or partnership means a corporation or partnership which is not domestic. See 26 USC 7701
- person: shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation. See 26 USC 7701
- United States: when used in a geographical sense includes only the States and the District of Columbia. See 26 USC 7701
- United States person: means &mdash. See 26 USC 7701
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.