Instructions for Form W-14, Certificate of Foreign Contracting Party Receiving Federal Procurement Payments

• Legal Form Number: W-14
• Issuer: Treasury Department
• Section: Treasury Department

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Instructions for Form W-14

(August 2016)

Certificate of Foreign Contracting Party Receiving Federal Procurement Payments

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue

Code unless otherwise noted.

Future Developments

For the latest information about

developments related to Form W-14 and

its instructions, such as legislation

enacted after they were published, go to

www.irs.gov/w14.

General Instructions

Purpose of Form

Section 5000C imposes a 2% tax on

foreign persons that receive specified

federal procurement payments pursuant to

certain contracts with the U.S. government

entered into on and after January 2, 2011.

This tax is imposed on the gross

amount of specified federal procurement

payments and is generally collected by

withholding under chapter 3. A specified

federal procurement payment is

considered to have been paid whether it is

paid directly to the contracting party or to a

nominee or agent on behalf of the

contracting party.

Provide Form W-14 to the acquiring

agency (U.S. government department,

agency, independent establishment, or

corporation) to:

Establish that you are a foreign

contracting party; and

If applicable, claim an exemption from

withholding based on an international

agreement (such as a tax treaty); or

Claim an exemption from withholding,

in whole or in part, based on an

international procurement agreement or

because goods are produced, or services

are performed, in the United States.

Provide Form W-14 to the acquiring

agency before you earn or receive

payments under the contract. Provide

Form W-14 as early as practicable (for

example, when the offer for contract is

submitted to the U.S. government) but in

any event no later than the date of

execution of the contract. You must also

submit a revised Section 5000C

Certificate within 30 days of a change in

circumstances that causes the information

in a Section 5000C Certificate held by the

acquiring agency to be incorrect.

Who Must Provide Form

W-14

You must provide Form W-14 to the

acquiring agency when requested if you

are a foreign contracting party that is due

to receive a specified federal procurement

payment (see definition later) under the

terms of the contract, and you are seeking

to claim an exemption (in whole or in part)

from the tax imposed by section 5000C.

You must also submit Form W-14 when

requested by the acquiring agency,

whether or not you are claiming an

exemption, in whole or in part, from

withholding under section 5000C.

Do not use Form W-14 if:

The payment is for any purpose other

than for goods or services;

You are a U.S. person; instead, use

Form W-9, Request for Taxpayer

Identification Number and Certification;

The payment is for purchases or

personal services under the simplified

acquisitions procedures that do not

exceed the simplified acquisition threshold

as described in 48 CFR 2.101;

The payment is for emergency

acquisitions under contracts that were

awarded under the “unusual and

compelling urgency” authority of 48 CFR

6.302-2 or were entered into under the

emergency acquisition flexibilities as

defined in 48 CFR Part 18;

The payment is for purchases made

pursuant to a foreign humanitarian

assistance contract described in Treasury

Regulations section 1.5000C-1(d)(4); and

You choose to submit a section 5000C

certificate that includes all the necessary

information required by Treasury

Regulations section 1.5000C-2(d).

Change in circumstances. If a change

in circumstances makes any information

on the Form W-14 you have submitted

incorrect, you must notify the acquiring

agency within 30 days of the change in

circumstances and you must provide a

new Form W-14 or other appropriate form.

Expiration of Form W-14. Generally, a

Form W-14 will remain valid for the term of

the contract unless a change in

circumstances makes any of the

information incorrect.

Definitions

Acquiring agency. An acquiring agency

is any U.S. government department,

agency, independent establishment, or

corporation described in 5 U.S.C. 101, 5

U.S.C. 102, 5 U.S.C. 104(1), and 31

U.S.C. 9101(3), that is a party to a

contract. An acquiring agency does not

include U.S. government departments,

agencies, independent establishments, or

corporations that are quasi-governmental

entities or instrumentalities of the U.S.

government.

To the extent that a U.S. government

department, agency, independent

establishment, or corporation, other than

the acquiring agency, is making the

specified federal procurement payments

pursuant to a contract, that department or

agency is also considered to be the

acquiring agency.

Foreign contracting party. A foreign

contracting party is any foreign person that

is a party to a contract with the U.S.

government that is entered into on or after

January 2, 2011. A foreign person is any

person other than a U.S. person (as

defined in section 7701(a)(30)).

International procurement agreement.

An international procurement agreement

includes the World Trade Organization

Government Procurement Agreement

within the meaning of 48 CFR 25.400(a)

(1) and any free trade agreement to which

the United States is a party that includes

government procurement obligations that

provide appropriate competitive

government procurement opportunities to

U.S. goods, services, and suppliers. A

party to an international procurement

agreement is a signatory to the agreement

and does not include a country that is

merely an observer with respect to the

agreement.

Specified federal procurement pay-

ment. A specified federal procurement

payment is any payment made pursuant to

a contract with a foreign contracting party

that is for goods manufactured or

produced or services provided in a foreign

country that is not a party to an

international procurement agreement with

the United States. For purposes of section

5000C, a foreign country does not include

an outlying area.

Outlying areas are the same areas as

set forth in 48 CFR 2.101(b), which

currently include Puerto Rico, the Northern

Mariana Islands, American Samoa, Guam,

the U.S. Virgin Islands, Baker Island,

Howland Island, Jarvis Island, Johnston

Atoll, Kingman Reef, Midway Islands,

Navassa Island, Palmyra Atoll, and Wake

Atoll.

Aug 11, 2016 Cat. No. 67607Z