Clauses · FAR · Payment and financing
FAR 52.229-6 Taxes-Foreign Fixed-Price Contracts
Does the regulation require it to flow down?
No
No subcontracts paragraph in the clause and nothing in FAR 29.402-1 reaching subcontracts — verified 2026-08-05. Primes mirror it for the same allocation reason as 52.229-3, with a sharper edge overseas: foreign indirect taxes (VAT, customs duty, municipal levies) are large and volatile, and the prime's fixed price absorbs them unless the same 'price includes all applicable taxes' language sits in the subcontract. The clause also obliges the party bearing the tax to chase exemptions and refunds, which is only enforceable against the party that actually pays the foreign authority — the sub
A clause can reach your subcontract without a mandate. Once it is in your document, it is a contract term all the same. The missing mandate is a fact about the regulation. It is not a ruling on your order.
Checked against acquisition.gov on 2026-08-05 · edition Feb 2013 (no alternates; page shows FAC 2026-01, effective 2026-03-13) · base v0.9.3 Read the text ↗
What it makes you produce
3 items for your checklist, slowest first.
Something you write2
Days to weeks, and nobody outside your company has to agree to it.
- FAR 52.229-6(d)
A written statement that the price includes no contingency for the after-imposed tax
Owed as the precondition of the increase under paragraph (d), and only where the adjustment clears the $250 floor at paragraph (g)
Prompt notice of all matters relating to taxes or duties that may reasonably be expected to move the price either way
FAR 52.229-6(j)
Nothing to send now
It does not hold the order. It decides what money moves later — what you can claim, what can be claimed from you, and what can be held back — and none of that changes after signature.
Nothing goes out now — paragraph (c) takes the price to include all applicable foreign taxes and duties in effect on the contract date, except those the United States and the host government agreed would not apply to United States expenditures, and the 2 percent United States excise under 26 U.S.C. 5000C may be neither priced in nor reimbursed
FAR 52.229-6(c)
When it is used
FAR 29.402-1(a): the contracting officer inserts 52.229-6 in solicitations and contracts expected to exceed the simplified acquisition threshold ($350,000 since 2025-10-01) when a fixed-price contract is contemplated and the contract is to be performed wholly or partly in a foreign country, unless the contract will be with a foreign government — in which case 52.229-7 is used instead. It is the mirror image of 52.229-3, which covers fixed-price work performed in the US or its outlying areas. A subcontract performed entirely inside the United States has no business carrying this clause; a subcontract with a foreign performance leg can properly carry both.
Read closely
Paragraph (i) calls for all reasonable action to obtain exemptions and pursue refunds, and letting one lapse produces the price decrease at paragraph (f) regardless. Interest a foreign authority pays on a refund goes to the Government under paragraph (h). Overseas the numbers are large and volatile — value-added tax, customs duty, municipal levies — which is why the prime mirrors the allocation downward.
The 3 templates that name it, with the line
Source: acquisition.gov, FAR 52.229-6 (5000C paragraph, after-imposed/after-relieved paragraphs, $250 floor) and FAR 29.402-1 (verified 2026-08-05)
This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.