Attachment 6: Instructions on Form W 14

Instructions for Form W-14
(August 2016)

Department of the Treasury
Internal Revenue Service

Certificate of Foreign Contracting Party Receiving Federal Procurement Payments 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

Aug 11, 2016

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