26 U.S.C. § 5000C — Imposition of tax on certain foreign procurement

There is hereby imposed on any foreign person that receives a specified Federal procurement payment a tax equal to 2 percent of the amount of such specified Federal procurement payment. For purposes of this section, the term "specified Federal procurement payment" means any payment made pursuant to a contract with the Government of the United States for— (1) the provision of goods, if such goods are manufactured or produced in any country which is not a party to an international procurement agreement with the United States, or (2) the provision of services, if such services are provided in any country which is not a party to an international procurement agreement with the United States. For purposes of this section, the term "foreign person" means any person other than a United States person. The amount deducted and withheld under chapter 3 shall be increased by the amount of tax imposed by this section on such payment. For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.