10 Under the provisions of resolutions EB9.R54 and WHA21.10, the Organization compensates some staff members for inequalities in remuneration received from WHO. The purpose of this section of the eManual is to establish the administrative procedures required to put this policy into effect. These procedures apply to all officials of the Organization in so far as they are relevant and according to the contractual status of the individual. They do not apply to persons with whom, through their contractual status with the Organization, an employer/employee relationship has not been established, e.g. holders of contractual service agreements or those individuals covered by a special services agreement or by consultant contracts.
20 Standard rules and procedures have been established to cover to the extent possible those countries which regularly impose taxes on the WHO income of their nationals and of others who normally would be subject to such income tax. Claims for tax reimbursement submitted by staff members who are nationals of countries other than those for which standard procedures exist should be forwarded to GSC/Payroll for examination and review.
Staff members
30 For those staff members who are subject to national income tax on their WHO earnings, the Organization reimburses the difference between the total tax payable when their WHO earnings are included in their total income and the tax payable when those earnings are excluded. The reimbursement takes into account all exclusions, exemptions, credits and deductions to which the staff member may be entitled under the applicable tax laws and regulations; see also Section III.18, Claims for reimbursement of income tax and Section III.18, United States income tax.
40 The terms of appointment of a staff member and whether or not he/she is in pay status with the Organization determine whether or not entitlement to income tax reimbursement exists. For example, there is no entitlement for staff who are on loan to the Organization and who receive no WHO salary or other emoluments, but who continue to be paid for their services by their government or by the institution or health service with which they remain in employee status. If any such staff member subsequently receives a modified contract under which he/she enters into pay status with WHO and an entitlement to income tax reimbursement is established, that entitlement is effective from the date of the new or modified appointment.
50 For income tax reporting purposes, "WHO earnings" may include some or all of the following depending upon whether the particular item is regarded as reportable income by the laws of the country concerned:
- basic salary or wages
- post adjustment
- dependants' allowance
- education grant
- settling-in grant - lump sum
- non-residence allowance
- language allowance
- overtime pay
- terminal entitlements (accrued annual leave, repatriation grant, end of service grant)
- indemnity payments
- home leave travel
- mobility incentive
- hardship allowance
- non-family service allowance
- hazard pay
- rental subsidy
- special operational living allowance
- extended monthly evacuation allowance
- shipment of household effects
60 For staff members who are subject to United States income tax, as agreed between WHO and the United States Government, with effect from the 1980 tax year, gross WHO salary must be declared for income tax purposes (see Section III.18, United States income tax). However, with effect from tax year 1988, principally for those staff members who, through bona fide residence abroad or physical presence for specified periods in countries outside the United States, qualify for the foreign earned income and excess foreign housing costs exclusions, the "grossing-up" of net income from WHO is necessary only with regard to the balance of net income after deduction of the exclusions (see Section III.18, United States income tax).
70 "Other income", "private" or "outside" income is defined as income derived from sources other than WHO. It may include, inter alia, income from investments and the earnings of one's spouse.
80 Income tax on benefits received from the United Nations Joint Staff Pension Fund (UNJSPF), whether in respect of a periodical benefit or a lump sum commutation, is not reimbursable. Such benefits are treated as "outside" income for tax reimbursement purposes.
90 GSC deals with matters concerning procedures of reimbursement of income tax for staff. However, the reimbursement of United States income tax is handled directly by United Nations Income Tax Unit (UNIT). Staff members must submit tax claims to UNIT for processing.
100 It is the personal responsibility of staff members to complete and file income tax returns, to make tax payments when due and to comply otherwise with all pertinent income tax laws and regulations. Staff members must also avail themselves of any exemption from the levy of income tax that such tax laws and regulations may provide, and are responsible for the claiming of any tax refund or benefit on WHO earnings which may be due and repayable to the Organization. WHO accepts no responsibility in these matters nor does it reimburse interest or penalties imposed by taxing authorities, when such is levied through no fault of WHO and particularly where tax laws and regulations have not been observed by the staff member.
110 Claims for reimbursement of income tax normally cannot be accepted if submitted more than one year beyond the date on which the income tax return should have been filed for the taxable year concerned.
120 Staff members who are nationals of, or who are assigned for duty in the countries listed in III.20 Annex 18.A are not required to pay taxes to the governments of those countries on their WHO earnings, because those governments have signed the Convention on Privileges and Immunities of the Specialized Agencies.
130 Staff members whose duty station is Switzerland, whatever their nationality, are exempt from Swiss taxes on their WHO earnings by virtue of the agreement signed on 21 August 1948 between the Swiss Federal Government and WHO.
140 Staff members who are United States resident aliens and who have not signed a Waiver of Rights, Privileges and Immunities nor obtained immigrant status, are exempt from United States taxes on their WHO earnings by virtue of Public Law 291, Title 1, "International Organizations Immunities Act". United States resident aliens will only be eligible for United States Income tax reimbursement upon submission to WHO of a copy of the signed and dated Waiver. Eligibility to tax reimbursement will commence on the date of signature of the Waiver. Information on the Waiver may be obtained by accessing here the USCIS website.
150 Staff members should enroll in the United States Electronic Federal Tax Payment System (EFTPS) program and send a copy of confirmation of registration to GSC to enable electronic payment of estimated tax.
160 A United States taxpayer who is physically present in a foreign country or countries for 330 full days during any period of 12 consecutive months, or who is a bona fide resident of a country outside the United States, may elect an exclusion in respect of foreign source earned income. In addition a United States taxpayer may elect an exclusion and/or deduction for excess foreign housing expenses. In determining the amount of income tax to be reimbursed, WHO takes these exclusions or deductions into account whenever applicable. Additional information on these provisions is set out in III.20 Annex 18.A.
170 In accordance with Article XVI of the Host Agreement relating to the International Agency for Research on Cancer (IARC), the Government of the French Republic exempts staff of the Agency who are not French nationals or permanent residents in France from all taxation on their Agency earnings.
180 Irrespective of nationality, staff members whose duty station is any of the Regional Offices at New Delhi, Alexandria, Copenhagen or Manila, are exempt from local income taxes on their WHO earnings by virtue of the host agreements between WHO and the Governments of India, Egypt, Denmark and the Philippines, respectively.
190 Internationally-recruited professional and general service staff who are not Congolese nationals and whose duty station is the Regional Office for Africa at Brazzaville, are exempt from taxes on their WHO earnings by virtue of the Host Agreement between WHO and the Government of the People's Republic of the Congo. General service staff recruited locally, whatever their nationality, are not granted tax exemption by the Congolese authorities. The Organization reimburses to these staff members the amount of income tax paid by them on their WHO earnings in accordance with the provisions set out in this section.
200 Exemption from taxation on WHO earnings may also be provided through a stipulation in a WHO Basic Agreement or a Revised Standard Agreement whereby a government, in so far as it is not already bound to do so, agrees to apply to the Organization and its staff the appropriate provisions of the Convention on the Privileges and Immunities of the Specialized Agencies.
