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FAR and DFARS › DFARS Part 252: Solicitation Provisions and Contract Clauses › Subpart 252.2

DFARS 252.229-7005 Tax exemptions (Spain).

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause applies to contracts performed in Spain that arise from U.S. Forces activities. It states that the contract price does not include taxes from which the U.S. Government is exempt, and lists specific Spanish excise, luxury, and transaction taxes that the contract is exempt from under tax relief agreements.

Applies to: Contractors performing work in Spain under contracts arising from U.S. Forces activities

What it requires

  • Ensure the contract price, including subcontract prices, does not include taxes from which the U.S. Government is exempt.

Key terms: Derechos de Aduana · Impuesto de Compensacion a la Importacion · Transmissiones Patrionomiales · Impuesto Sobre el Lujo · Actos Juridocos Documentados

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 229.402-70(e)(1), use the following clause:

Tax Exemptions (Spain) (MAR 2012)

(a) As the Contractor represented in its offer, the contract price, including the prices in subcontracts awarded under this contract, does not include taxes from which the United States Government is exempt.

(b) In accordance with tax relief agreements between the United States Government and the Spanish Government, and because the incumbent contract arises from the activities of the United States Forces in Spain, the contract will be exempt from the following excise, luxury, and transaction taxes:

(1) Derechos de Aduana (Customs Duties).

(2) Impuesto de Compensacion a la Importacion (Compensation Tax on Imports).

(3) Transmissiones Patrionomiales (Property Transfer Tax).

(4) Impuesto Sobre el Lujo (Luxury Tax).

(5) Actos Juridocos Documentados (Legal Official Transactions).

(6) Impuesto Sobre el Trafico de Empresas (Business Trade Tax).

(7) Impuestos Especiales de Fabricacion (Special Products Tax).

(8) Impuesto Sobre el Petroleo y Derivados (Tax on Petroleum and its By-Products).

(9) Impuesto Sobre el Uso de Telefona (Telephone Tax).

(10) Impuesto General Sobre la Renta de Sociedades y demas Entidades Juridicas (General Corporation Income Tax).

(11) Impuesto Industrial (Industrial Tax).

(12) Impuesto de Rentas Sobre el Capital (Capital Gains Tax).

(13) Plus Vailia (Increase on Real Property).

(14) Contribucion Territorial Urbana (Metropolitan Real Estate Tax).

(15) Contribucion Territorial Rustica y Pecuaria (Farmland Real Estate Tax).

(16) Impuestos de la Diputacion (County Service Charges).

(17) Impuestos Municipal y Tasas Parafiscales (Municipal Tax and Charges).

(End of clause)

Sections it refers to

Sections that refer to it

← 252.229-7004 Status of contractors as a direct contractor (Spain). · 252.229-7006 Value Added Tax Exclusion (United Kingdom) →

Rule changes for DFARS Part 252

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 252.229-7005 Tax exemptions (Spain) · SpendQuery