FAR 29.402-4—Taxes—Foreign Contracts in Afghanistan.
Plain-English Summary
FAR 29.402-4 tells contracting personnel which tax clause to include when a solicitation or contract will be performed in Afghanistan. It covers two related but distinct situations: contracts awarded by or on behalf of U.S. Forces, and contracts awarded on behalf of or in support of NATO that are governed by the NATO Status of Forces Agreement (SOFA). The section exists to ensure the correct foreign-tax treatment is built into the contract from the start, so the parties know how Afghan taxes are handled and which clause controls. In practice, this is a clause-selection rule: the contracting officer must choose between FAR 52.229-13, Taxes—Foreign Contracts in Afghanistan, and FAR 52.229-14, Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement). Using the wrong clause can create compliance problems, payment disputes, or inconsistent treatment of taxes under the applicable international agreement. The section is narrow, but it is important because Afghanistan performance and NATO-related work may be subject to different legal frameworks.
Key Rules
Use 52.229-13 for U.S. Forces work
For solicitations and contracts with performance in Afghanistan awarded by or on behalf of U.S. Forces, the contracting officer must include FAR 52.229-13, Taxes—Foreign Contracts in Afghanistan, unless the NATO-specific clause applies instead.
Use 52.229-14 for NATO SOFA work
For solicitations and contracts with performance in Afghanistan awarded on behalf of or in support of NATO and governed by the NATO SOFA, the contracting officer must use FAR 52.229-14 instead of FAR 52.229-13.
Clause choice depends on the governing framework
The deciding factor is not just where the work is performed, but whether the contract is tied to U.S. Forces or to NATO activities covered by the NATO Status of Forces Agreement. The clause must match the legal and operational context of the procurement.
Apply the clause in both solicitations and contracts
The rule covers both solicitations and resulting contracts, so the correct clause should be inserted early and carried through award to ensure bidders and contractors understand the tax treatment before performance begins.
Responsibilities
Contracting Officer
Determine whether the procurement is for U.S. Forces or for NATO SOFA-covered work in Afghanistan, select the correct clause, and include it in the solicitation and contract. The contracting officer must avoid using both clauses together and must ensure the clause matches the governing agreement.
Agency/Procuring Activity
Identify the mission context and legal authority for the procurement so the contracting officer can determine whether the work is being awarded by or on behalf of U.S. Forces or on behalf of or in support of NATO. The agency must support accurate clause selection and contract administration.
Contractor
Review the solicitation and contract to understand which Afghanistan tax clause applies, price and perform accordingly, and comply with the tax-related obligations and procedures established by the incorporated clause and any applicable local tax rules.
Contract Administration Personnel
Monitor performance and payment issues to ensure the correct Afghanistan tax clause is being applied consistently throughout contract administration, especially if the contract scope or sponsoring organization changes.
Practical Implications
The main day-to-day task is clause selection: contracting staff must confirm whether the requirement is tied to U.S. Forces or NATO SOFA-covered support before issuing the solicitation.
A common pitfall is treating all Afghanistan work the same. This section makes clear that NATO-related work may require a different clause than standard U.S. Forces work.
Using the wrong clause can lead to tax handling errors, disputes over invoicing or reimbursement, and possible noncompliance with the applicable international agreement.
Contractors should check the clause carefully because it affects how foreign taxes are addressed in pricing, performance, and administration.
If the sponsoring organization or legal basis for the work is unclear, the contracting officer should resolve that before award rather than trying to fix the clause later.
Official Regulatory Text
(a) Use the clause at 52.229-13 , Taxes—Foreign Contracts in Afghanistan, in solicitations and contracts with performance in Afghanistan awarded by or on behalf of U.S. Forces, unless the clause at 52.229-14 is used. (b) Use the clause at 52.229-14 , Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement), instead of the clause at 52.229-13 , Taxes—Foreign Contracts in Afghanistan, in solicitations and contracts with performance in Afghanistan awarded on behalf of or in support of the North Atlantic Treaty Organization (NATO), which are governed by the NATO Status of Forces Agreement (SOFA).