Instructions For Form W-14 - Certificate Of Foreign Contracting Party Receiving Federal Procurement Payments
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1
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3Instructions for Form W-14
Department of the Treasury
Internal Revenue Service
(August 2016)
Certificate of Foreign Contracting Party Receiving Federal Procurement Payments
Section references are to the Internal Revenue
are a foreign contracting party that is due
entities or instrumentalities of the U.S.
Code unless otherwise noted.
to receive a specified federal procurement
government.
payment (see definition later) under the
To the extent that a U.S. government
Future Developments
terms of the contract, and you are seeking
department, agency, independent
to claim an exemption (in whole or in part)
establishment, or corporation, other than
For the latest information about
from the tax imposed by section 5000C.
the acquiring agency, is making the
developments related to Form W-14 and
You must also submit Form W-14 when
specified federal procurement payments
its instructions, such as legislation
requested by the acquiring agency,
pursuant to a contract, that department or
enacted after they were published, go to
whether or not you are claiming an
agency is also considered to be the
exemption, in whole or in part, from
acquiring agency.
withholding under section 5000C.
General Instructions
Foreign contracting party. A foreign
Do not use Form W-14 if:
contracting party is any foreign person that
The payment is for any purpose other
is a party to a contract with the U.S.
Purpose of Form
than for goods or services;
government that is entered into on or after
Section 5000C imposes a 2% tax on
You are a U.S. person; instead, use
January 2, 2011. A foreign person is any
foreign persons that receive specified
Form W-9, Request for Taxpayer
person other than a U.S. person (as
federal procurement payments pursuant to
Identification Number and Certification;
defined in section 7701(a)(30)).
certain contracts with the U.S. government
The payment is for purchases or
International procurement agreement.
entered into on and after January 2, 2011.
personal services under the simplified
An international procurement agreement
acquisitions procedures that do not
This tax is imposed on the gross
includes the World Trade Organization
exceed the simplified acquisition threshold
amount of specified federal procurement
Government Procurement Agreement
as described in 48 CFR 2.101;
payments and is generally collected by
within the meaning of 48 CFR 25.400(a)
The payment is for emergency
withholding under chapter 3. A specified
(1) and any free trade agreement to which
acquisitions under contracts that were
federal procurement payment is
the United States is a party that includes
awarded under the “unusual and
considered to have been paid whether it is
government procurement obligations that
compelling urgency” authority of 48 CFR
paid directly to the contracting party or to a
provide appropriate competitive
6.302-2 or were entered into under the
nominee or agent on behalf of the
government procurement opportunities to
emergency acquisition flexibilities as
contracting party.
U.S. goods, services, and suppliers. A
defined in 48 CFR Part 18;
party to an international procurement
Provide Form W-14 to the acquiring
The payment is for purchases made
agreement is a signatory to the agreement
agency (U.S. government department,
pursuant to a foreign humanitarian
and does not include a country that is
agency, independent establishment, or
assistance contract described in Treasury
merely an observer with respect to the
corporation) to:
Regulations section 1.5000C-1(d)(4); and
agreement.
Establish that you are a foreign
You choose to submit a section 5000C
contracting party; and
certificate that includes all the necessary
Specified federal procurement pay-
If applicable, claim an exemption from
information required by Treasury
ment. A specified federal procurement
withholding based on an international
Regulations section 1.5000C-2(d).
payment is any payment made pursuant to
agreement (such as a tax treaty); or
a contract with a foreign contracting party
Change in circumstances. If a change
Claim an exemption from withholding,
that is for goods manufactured or
in circumstances makes any information
in whole or in part, based on an
produced or services provided in a foreign
on the Form W-14 you have submitted
international procurement agreement or
country that is not a party to an
incorrect, you must notify the acquiring
because goods are produced, or services
international procurement agreement with
agency within 30 days of the change in
are performed, in the United States.
the United States. For purposes of section
circumstances and you must provide a
5000C, a foreign country does not include
Provide Form W-14 to the acquiring
new Form W-14 or other appropriate form.
an outlying area.
agency before you earn or receive
Expiration of Form W-14. Generally, a
Outlying areas are the same areas as
payments under the contract. Provide
Form W-14 will remain valid for the term of
set forth in 48 CFR 2.101(b), which
Form W-14 as early as practicable (for
the contract unless a change in
example, when the offer for contract is
currently include Puerto Rico, the Northern
circumstances makes any of the
submitted to the U.S. government) but in
Mariana Islands, American Samoa, Guam,
information incorrect.
any event no later than the date of
the U.S. Virgin Islands, Baker Island,
Definitions
execution of the contract. You must also
Howland Island, Jarvis Island, Johnston
Atoll, Kingman Reef, Midway Islands,
submit a revised Section 5000C
Acquiring agency. An acquiring agency
Navassa Island, Palmyra Atoll, and Wake
Certificate within 30 days of a change in
is any U.S. government department,
circumstances that causes the information
Atoll.
agency, independent establishment, or
in a Section 5000C Certificate held by the
corporation described in 5 U.S.C. 101, 5
acquiring agency to be incorrect.
U.S.C. 102, 5 U.S.C. 104(1), and 31
Who Must Provide Form
U.S.C. 9101(3), that is a party to a
contract. An acquiring agency does not
W-14
include U.S. government departments,
You must provide Form W-14 to the
agencies, independent establishments, or
acquiring agency when requested if you
corporations that are quasi-governmental
Aug 11, 2016
Cat. No. 67607Z
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