Dear Sir/Madame,
Our company residing in Turkey is a foreign contractor(or subcontractor) of USA Government projects(USACE etc) in Afghanistan. We receive some Federal procurement payments according to our contracts.In respect of new regulation which is expected to be published in FAR Case 2011-011, %2 excise tax will be applied to foreign persons.As far as we understand, suppliers of foreign services and goods residing in GPA parties are exempted from that situation. We are a Turkish company.Even though Turkey is member of WTO, we are the observer party in terms of GPA. According to our situation, the payments to be made to us are going to be subject to excise tax (%2) or not?
Having considered, a Turkish company providing services as subcontractor or contractor for USACE Contractors, (since Afghanistan is not a member of GPA), what will be the situation of subcontractors in terms of being deducted 2 % as excise tax of total payments to be made from the USA clients to those subcontractors.
The aforementioned law has been applicable since 2nd of January ,2011 in accordance with some documents. However, any rules and regulatons of this law have not been ratified yet. It is to be clarified when it will be valid and enacted. The other crucial point; this amendment is going to be applied retrospectively(which is not reasonable and fair) or not?
We are looking forward to receiving your kind reply.
Yours Sincerely,
Comment on FR Doc # 2012-03905
This is comment on Proposed Rule
Federal Acquisition Regulations: Unallowability of Costs Associated with Foreign Contractor Excise Tax; FAR Case 2011–011
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