U.S. DOD Form dod-secnavinst-5840-5
DEPARTMENT
OFFICE
OF THE NAVY
OF THE SECRETARY
WASHINGTON,
D, C. 20350
SECNAVINST5840.5
OGC/WLB:hdp
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SECNAV INSTRUCTION5840.5
From: Secretary of the Navy
Subj:
Encl:
u Department of Defense Foreign Tax Relief Progrm
~w=
~% [q~~
, same
(1) DOD Directive 5100.64 of ~
*
subject
1. Purpose. To implement the Department of Defense Foreign
Tax Relief Progrm.
~.5­
of Enclosure (1), the
2. Action. Pursuant to paragraph ~.
Office of the General Counsel is designated as the Cognizant
Office charged with continuing responsibility for supenising
and monitoring the implementation of the Department of Defense
Foreign Tax Relief Program within the Department of the Navy.
The Office of the General Counsel is hereby delegated authority
commensurate with the responsibility of the Cognizant Office.
&4t’’aA’-ti
DISTRIBUTION: PART I
SNDL:
CHARLESA.BOWSHER ASSISTANT SECRETARY OF THENAw (F’JNANCT4T,?ffiv,~.(;~k:~}:r?) 50A
PART 11 Al (SO-2,SO-5, SECNAV
Directives Control Point
only), A2A (OGC, JAG,
ONR only), A4A, FKAl
“copy to:
A2A (NAVCOMPT only),
SNDL:
A3, A6
Stocked:
supply & Fiscal Dept. (Code 514.32)
Naval Station, Washingt&, D. C. 2Q390
SECNAVINST
5840.5
1 Ott 1979
II
CH-3
June
12, 1979
NUMBER 5100.64
GC,
Department
UBJECT
eferences:
DoD Foreign
(a)
(b
(c)
(d)
.
REISSUANCE
AND
IbD
of Defense Directive
Tax
Relief
Program
DoD Directive
5100.64, “Depart­
ment of Defense Foreign Tax
Relief Program,” August 121 1970
(hereby canceled)
DoD Instruction
2050.1, “Dele­
gated Approval Authority
to
Negotiate
and Conclude Inter­
national Agreements,”
July 61
1977
DoD Directive
5000.35, “Defense
Acquisition
Regulatory
Systeml”
March 8, 1978
DoD Directive
5525.1, “Status
of Forces Policies and Infor­
mation,” January 20, 1966
PURPOSE
This Directive
(1) reissues reference
(a), with-
chancre, to correct superseded
refer­
Ut substantive
of the
nces; and (2) defin=s th’e tax relief-policy
the organizational
epartment of Defense, designates
lement which has continuing
responsibility
for the
verall direction of the DoD Foreign Tax Relief
rogram, delineates
the responsibilities
of other
rganizational
elements to implement and monitor
he program, and requires the preparation
and
aintenance
of specified foreign country tax law
tudies in order to facilitate
the institution
of
tatistical
reporting procedures.
.
APPLICABILITY
AND SCOPE
of this Directive
apply
1. The provisions
o the Office of the Secretary of Defensel the
the Organization
of the Joint
iilitary Departments,
;hiefs of Staff, the Unified Command, and the Defense
Enclosure
(1)
.
Agencies
2.
to:
(hereafter
The policy
referred
to as “DoD Components”).
set forth
in this
Military functions
a.
Department
of Defense, and
Directive
expenditures
applies
by the
b.
Expenditures
by nonappropriated
fund
activities
of the Department
of Defense that are subject
to taxes imposed by:
(1) Foreign countries
in which U.S.
military forces are regularly
stationed
(other than
attache and other military personnel
assigned t.o a U.S.
diplomatic mission);
and
(2) Any other foreign country in which
in a ct;iiective se~.se~
all or most U.S. defense activities,
are conducted
in the interest of the common defense or
otherwise
significantly
improve the military
security of
that country.
3. The policy set forth in this Directive also
to Military Assistance
Program
(MAP) expenditures
in all countries.
c.
applies
DEFINITIONS
Regardless
of how a charge is denominated
in
1.
foreign law or regulation,
the words “tax” and “taxes”
include all direct or indirect foreign customs duties,
import and export taxes, excises, fees and ether charges
imposed at the national,
local or intermediate
level of a
foreign country other than charges for services rendered or
for other consideration
received.
For example, taxes include but are not limited to
2.
purchase tax, sales tax, use tax, gross receipts tax, stamp
tax, turnover tax, value
tax, transfer tax, transaction
added tax, service tax, trade tax, business tax, license
tax, transportation
tax, circulation
tax, luxury tax,
possession
tax, production
tax, registration
tax, consump­
tion tax, gasoline tax, real property tax, personal property
tax, and gross income tax.
2
Jun 12, 79
5100.64
The word “relief” includes any method, technique,
3.
or procedure by which the ultimate economic burden of a tax
on DoD funds may be avoided or otherwise remedied,
such as
exemption, refund, or drawback.
D.
POLICY
It is the policy of the Department
of Defense to se­
cure, to the maximum extent practicable,
effective
relief
from all foreign taxes wherever the ultimate economic burden
of those taxes would, in the absence of such relief, be
borne by funds appropriated
or allocated
to the Department
of Defense
(including MAP appropriations)
or under the
In those
control of its nonappropriated
fund activities.
cases in which the total economic burden of a tax not
readily identifiable
in the normal course of business is so
small that it may be considered
a de minimis matter, or in
which the administrative
burden of=e~effective
relief
from a tax in a particular
instance would be out of pro­
portion to the amount of the relief obtained,
tax relief
shall be considered
impracticable.
E.
RESPONSIBILITIES
1.
shall:
The General
Counsel
of the Department
Provide overall supervision
a.
the DoD Foreign Tax Relief Program.
b.
Resolve
any significant
of Defense
and direction
issues
relating
of
to the
program.
Designate those
c.
subparagraph
B.2.b. (2) of this
countries
that
Directive.
come within
Direct the preparation
of country tax law
d.
studies for countries not within the scope of subsection
B.2. of this Directive.
e.
Designate
the DoD member
Agency Committee on Foreign Tax Relief,
Department
of State.
of the Inter-
established
by the
2.
The Assistant
Secretary of Defense
(Interna­
tional Security Affairs)
shall monitor the negotiation
and
conclusion of international
agreements
subject to the
Secretary’s
approval authority under DoD Instruction
2050.1
3