Sec. 9505. Prohibition on taxation of foreign assistance
190 words·~1 min read·
/bill/113/hr/1793/ih/section-9505·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
No foreign assistance may be provided to a foreign government under a bilateral agreement entered into after the date of the enactment of this Act governing the terms and conditions under which such assistance is to be provided unless such agreement includes a provision stating that United States foreign assistance shall be exempt from taxation or reimbursed by the foreign government. In each fiscal year, the Secretary shall reduce the amount of foreign assistance made available under this Act to a government by an amount equivalent to the total taxes assessed on United States foreign assistance, either directly or through grantees, contractors and subcontractors, by such government in the previous fiscal year, until such taxes have been reimbursed to the United States.
The Secretary shall include in each report on allocations of assistance under section 8303 the amount of unreimbursed taxes assessed by each government to which the United States Government intends to provide funds. In this section, the terms taxes and taxation refer to value-added taxes and customs duties imposed on commodities financed with United States foreign assistance, and do not include foreign taxes of a de minimis nature.