FAR 29—Taxes

Scope of part.

FAR 29.000 is the scope statement for FAR Part 29, which covers tax issues in federal contracting. It tells readers that this part prescribes policies and procedures for using tax clauses in contracts, including foreign contracts; asserting immunity or exemption from taxes; and obtaining tax refunds. It also explains how Federal, State, and local taxes apply to certain supplies and services acquired by executive agencies, and how those taxes relate to the Federal Government’s status and purchasing activities. In practice, this section signals that Part 29 is a guidance framework for contracting personnel, not a complete tax law treatise, and that users must still consult the underlying tax statutes, regulations, and local tax authorities when specific issues arise. Its practical significance is that it helps contracting officers and contractors identify when tax clauses, tax-exemption claims, or refund procedures may affect contract pricing, invoicing, and administration.

Subpart 29.1

Definitions.

FAR 29.001 in this excerpt provides the controlling definitions used in Part 29 for two special categories of personnel and property in Afghanistan: "North Atlantic Treaty Organization (NATO) Forces" and "U.S. Forces." It explains that NATO Forces includes the Members of the Force, Members of the Civilian Component, NATO Personnel, and all property, equipment, and materiel of NATO, NATO Member States, and Operational Partners present in Afghanistan. It also defines U.S. Forces as the entity comprising the members of the force and civilian component, plus all property, equipment, and materiel of the United States Armed Forces present in Afghanistan. The purpose of these definitions is to establish exactly who and what is covered when Part 29 applies in the Afghanistan context, so contracting officers, contractors, and other stakeholders can determine the correct legal treatment, protections, and obligations. In practice, these definitions matter because they control the scope of any Part 29 requirements that depend on whether an item, person, or organization falls within NATO Forces or U.S. Forces, and they help avoid misclassification of personnel, assets, and contractual responsibilities.

Subpart 29.2

Subpart 29.3

Subpart 29.4