world bank salary - tax free for US citizens?
Is it true that if you are employed at World Bank in DC, your salary is tax free? Who has the knowledge on this and would you please share with me? What are the conditions that a person needs to meet and what is the basis?
- TaxGuruLv 41 decade agoFavorite Answer
I believe that the World Bank as an IGO has a status similar to that of the UN. The treaty which established the Bank exempts non-US taxpayers from US tax on their Bank salaries. However, the US does not give up the right to tax its own citizens in such cases.
From the IRS website:
Employees of International Organizations
* If you work for an international organization in the United States and you are not a U.S. citizen (or you are a U.S. citizen but are also a citizen of the Philippines), your salary from that organization is exempt from U.S. tax.
* An international organization is an organization designated by the President of the United States through Executive Order to qualify for the privileges, exemptions, and immunities provided in the International Organizations Immunities Act.
* You should find out if you have been made known to, and have been accepted by, the Secretary of State as an officer or an employee of that organization, or if you have been designated by the Secretary of State, before formal notification and acceptance, as a prospective officer or employee.
* If you are claiming exemption, you should know the number of the Executive Order covering the international organization and should have some written evidence of your acceptance or designation by the Secretary of State.
* The exemption is denied when, because the Secretary of State determines your presence in the United States is no longer desirable, you leave the United States (or after a reasonable time allowed for leaving the United States). The exemption is also denied when a foreign country does not allow similar exemptions to U.S. citizens. Then the Secretary of State can withdraw the privileges, exemptions, and immunities from the nationals of that foreign country.
- 1 decade ago
US citizens are taxed by the US government no matter where you get your income from and no matter where you live. You can't escape taxes, even if you choose to move to Timbuktu. You may get some deductions if you are paying taxes elsewhere, but there will always be some taxation.
As for the specific case of the World Bank, I doubt that the salary is tax free. The only way I could think of, would be if they paid you in stock, instead of cash. If that were the case, you would not pay taxes upon receiving the stock, but you do have to pay taxes at the moment to sell the stock and turn it into cash, so in the long run it's the same thing.
- 3 years ago
we are a usa run with the aid of crooks. that is been this manner because the FED took over the U. S.. Obama works for them and under no circumstances any incorrect way round. Get used to it, you may't grow to be President till you're a member of Rockefeller managed CFR. with out an total revolution this usa is doomed.
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- BoomChikkaBoomLv 61 decade ago
For most of their employees, that is true.
It's one of those things that sounds like an urban legend, but is based in fact.
Salaries of UN diplomats are also tax-free.
- 1 decade ago
it is not true - you have to be a tax payer somewhere - if you declare yourself to be a tax payer in another country then you will not have to pay tax here in the US - but don't think that they won't check up on you and if you have lied and are not actually paying tax anywhere then you are looking at jail time.