Tax Reimbursement for US Staff Members

Tax Reimbursement for US Staff Members
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The issue of taxation of salary and emoluments of UN staff members of US nationality has a long history. The need for tax reimbursement arises primarily because one member state, the US, does not recognize UN derived income as tax exempt. Tax equalization and reimbursement schemes are cumbersome substitutes for tax exemption. The use of these mechanisms treats US nationals employed by the UN differently from other nationalities, because UN derived salaries and emoluments are mixed with other income of the US staff member when taxed. Furthermore, in some organizations UN-derived income is considered “last income”, while in other organizations it is considered “first income”. For first income arrangements, non-UN income does not receive full benefit from exemptions and standard/itemized deductions. Also, non-UN income is taxed at the highest marginal rate. The FB Network is following this subject with the objective of coordinating negotiations with Member States regarding tax reimbursement matters, in order to provide equal or equivalent treatment for all UN staff members. IAEA is becoming the center of expertise in the UN system on the subject, in particular since its establishment of a website with relevant information and advice. Through this website, IAEA is also providing tax reimbursement services for US staff members for other UN organizations.Work in this area is led by Richard Hilliard, Head, Special Accounting Unit, IAEA.
US Tax Information for UN Staff Members Abroad
Link to the IAEA's service on US tax information for UN staff members stationed outside the US