# 26 U.S.C. § 5000C: Imposition of tax on certain foreign procurement

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s5000C>. Cite pinpoints as 26 U.S.C. § 5000C(a)(1).

## § 5000C(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.

## § 5000C(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—

**§ 5000C(b)(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

**§ 5000C(b)(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.

## § 5000C(c) Foreign person

For purposes of this section, the term “foreign person” means any person other than a United States person.

## § 5000C(d) Administrative provisions

**§ 5000C(d)(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.

**§ 5000C(d)(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.

## Regulations

- [Treas. Reg. § 1.5000C-0](/26/reg/1.5000C-0.md): Outline of regulation provisions for section 5000C. (interprets § 5000C)
- [Treas. Reg. § 1.5000C-1](/26/reg/1.5000C-1.md): Tax on specified Federal procurement payments. (interprets § 5000C)
- [Treas. Reg. § 1.5000C-2](/26/reg/1.5000C-2.md): Withholding on specified Federal procurement payments. (interprets § 5000C)
- [Treas. Reg. § 1.5000C-3](/26/reg/1.5000C-3.md): Payment and returns of tax withheld by the acquiring agency. (interprets § 5000C)
- [Treas. Reg. § 1.5000C-4](/26/reg/1.5000C-4.md): Requirement for the foreign contracting party to file a return and pay tax, and procedures for the contracting party to seek a refund. (interprets § 5000C)
- [Treas. Reg. § 1.5000C-5](/26/reg/1.5000C-5.md): Anti-abuse rule. (interprets § 5000C)
- [Treas. Reg. § 1.5000C-6](/26/reg/1.5000C-6.md): Examples. (interprets § 5000C)
- [Treas. Reg. § 1.5000C-7](/26/reg/1.5000C-7.md): Effective/applicability date. (interprets § 5000C)

## Forms named in the regulations

- [Form 1042](https://www.irs.gov/pub/irs-pdf/f1042.pdf)
- [Form 1042-S](https://www.irs.gov/pub/irs-pdf/f1042s.pdf)
- [Form W-9](https://www.irs.gov/pub/irs-pdf/fw9.pdf)
- [Form 1120-F](https://www.irs.gov/pub/irs-pdf/f1120f.pdf)

## Final rules

- [81 FR 55133](https://www.federalregister.gov/documents/2016/08/18/2016-19452/tax-on-certain-foreign-procurement) (2016): Tax on Certain Foreign Procurement

## Amendments

- 2011-01-02: [Pub. L. 111-347](/26/act/111-347.md), 124 Stat. 3666