Yesterday the White House announced the signing of a Bilateral Security Agreement (“BSA”) between the United States and the Afghan Government of National Unity, as well as a Status of Forces Agreement between the Afghan Government and NATO. Together these agreements allow approximately 12,000 U.S. and NATO troops to remain in Afghanistan after December 31, 2014, and they maintain the flow of billions of dollars in aid to Afghanistan. In addition, the BSA will address significant open questions about the rights and responsibilities of U.S. Government contractors in Afghanistan, to include: How will they be taxed by the Afghan Government?
Continue Reading Bilateral Security Agreement Could Mean Afghan Tax Relief for U.S. Contractors
Taxes
Will the “Inversion” Backlash Flow-Down to Subcontractors?
By Jennifer Plitsch & Michael Wagner on
Washington policymakers are criticizing corporate “inversions”—i.e., U.S. companies that reincorporate abroad under lower corporate income tax rates—and contractors should take note. Currently, U.S. law bars an inverted domestic corporation (“IDC”) from receiving funds under a prime U.S. contract. See Consolidated Appropriations Act of 2014 (H.R. 3547); see also FAR 9.108-2. On July 29,…