Chapter 50 · Foreign procurement
5000CImposition of tax on certain foreign procurement#
(a)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)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)For purposes of this section, the term “foreign person” means any person other than a United States person.
(d)
(1)The amount deducted and withheld under chapter 3 shall be increased by the amount of tax imposed by this section on such payment.
(2)For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.
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