Internal Revenue Code · 26 U.S.C.
§ 5000C. Imposition of tax on certain foreign procurement
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 5000C
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- January 2, 2011 by Pub. L. 111–347
- Length
- 4 subsections · 209 words · about 1 min to read
- Defines
- 2 terms
- Cross-references
- cites 0; cited by 0 Code sections and 1 other regulation
- Regulations
- 8 issued under this section
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.
For purposes of this section, the term “foreign person” means any person other than a United States person.
The amount deducted and withheld under chapter 3 shall be increased by the amount of tax imposed by this section on such payment.
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.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 5000C
- § 1.5000C-0 Outline of regulation provisions for section 5000C.
- § 1.5000C-1 Tax on specified Federal procurement payments.
- § 1.5000C-2 Withholding on specified Federal procurement payments.
- § 1.5000C-3 Payment and returns of tax withheld by the acquiring agency.
- § 1.5000C-4 Requirement for the foreign contracting party to file a return and pay tax, and procedures for the contracting party to seek a refund.
- § 1.5000C-5 Anti-abuse rule.
- § 1.5000C-6 Examples.
- § 1.5000C-7 Effective/applicability date.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited in 1 regulation not issued under it
Amendment history
From the source credit and the official notes, newest first.
- Added by Pub. L. 111–347
Where it sits in the Code
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
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) In general.— The head of each executive agency shall take any and all measures necessary to ensure that no funds are disbursed to any foreign contractor in order to reimburse the tax imposed under section 5000C of the Internal Revenue Code of 1986.“(2) Annual review.— The Administrator for Federal Procurement Policy shall annually review the contracting activities of each executive agency to monitor compliance with the requirements of paragraph (1).“(3) Executive agency.— For purposes of this subsection, the term ‘executive agency’ has the meaning given the term in section 4 of the Office of Federal Procurement Policy Act ([former] 41 U.S.C. 403) [see 41 U.S.C. 133].”
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.”