Anyone know anyone who works for the World Bank? Do they really not pay Federal taxes? How can that be?

How difficult is it to land a job at the World Bank or say the IMF? Your thoughts appreciated.

They are an international organization therefore their employees are often here on assignments. With that being said they aren't exempt from their home country's federal taxes. Same applied to me while I was living abroad, I didn't file taxes with my host country however the IRS has what is called a Global Tax which is filed by Americans living abroad. Either way they get taxed and most of the time it is by their host country which is fine by me. Think about it they have to shop on our economy and every dollar they spend here goes into our economy. What I find bs is the fact that diplomats are exempt from value added sales tax which their low life friends try to use to at department stores and bitch when they get busted.

I believe it is true - I was on a flight, sat next to a gal about to take an economist role with the UN, and she told me the same thing. Zero tax, no Federal, no State, no local. Thus, you make 100K salary, that is like a taxed $175K job.

rogerklotz Wrote:
-------------------------------------------------------
> They are an international organization therefore
> their employees are often here on assignments.
> With that being said they aren't exempt from their
> home country's federal taxes. Same applied to me
> while I was living abroad, I didn't file taxes
> with my host country however the IRS has what is
> called a Global Tax which is filed by Americans
> living abroad. Either way they get taxed and most
> of the time it is by their host country which is
> fine by me. Think about it they have to shop on
> our economy and every dollar they spend here goes
> into our economy. What I find bs is the fact that
> diplomats are exempt from value added sales tax
> which their low life friends try to use to at
> department stores and bitch when they get busted.

You, sir, are wrong. Totally incorrect.

Vijay Patel Wrote:
-------------------------------------------------------
> rogerklotz Wrote:
> --------------------------------------------------
> -----
> > They are an international organization
> therefore
> > their employees are often here on assignments.
> > With that being said they aren't exempt from
> their
> > home country's federal taxes. Same applied to
> me
> > while I was living abroad, I didn't file taxes
> > with my host country however the IRS has what
> is
> > called a Global Tax which is filed by Americans
> > living abroad. Either way they get taxed and
> most
> > of the time it is by their host country which
> is
> > fine by me. Think about it they have to shop
> on
> > our economy and every dollar they spend here
> goes
> > into our economy. What I find bs is the fact
> that
> > diplomats are exempt from value added sales tax
> > which their low life friends try to use to at
> > department stores and bitch when they get
> busted.
>
> You, sir, are wrong. Totally incorrect.


Agreed. Rogerklotz is 100% wrong. Points for saying it with such authority though.

rogerklotz Wrote:
-------------------------------------------------------
> They are an international organization therefore
> their employees are often here on assignments.
> With that being said they aren't exempt from their
> home country's federal taxes. Same applied to me
> while I was living abroad, I didn't file taxes
> with my host country however the IRS has what is
> called a Global Tax which is filed by Americans
> living abroad. Either way they get taxed and most
> of the time it is by their host country which is
> fine by me. Think about it they have to shop on
> our economy and every dollar they spend here goes
> into our economy. What I find bs is the fact that
> diplomats are exempt from value added sales tax
> which their low life friends try to use to at
> department stores and bitch when they get busted.


You are dead wrong; there is no global U.S. income tax on IMF, World Bank, IDB, or UN related workers abroad ( regardless if they are American or G4 visa holders). All of these organizations are headquatered in the States, and, if their employees are assigned to work here, they must pay state and federal taxes. If, however, they are given a multi year assignment abroad, then their earnings are tax free.

bank on this Wrote:
-------------------------------------------------------
> rogerklotz Wrote:
> --------------------------------------------------
> -----
> > They are an international organization
> therefore
> > their employees are often here on assignments.
> > With that being said they aren't exempt from
> their
> > home country's federal taxes. Same applied to
> me
> > while I was living abroad, I didn't file taxes
> > with my host country however the IRS has what
> is
> > called a Global Tax which is filed by Americans
> > living abroad. Either way they get taxed and
> most
> > of the time it is by their host country which
> is
> > fine by me. Think about it they have to shop
> on
> > our economy and every dollar they spend here
> goes
> > into our economy. What I find bs is the fact
> that
> > diplomats are exempt from value added sales tax
> > which their low life friends try to use to at
> > department stores and bitch when they get
> busted.
>
>
> You are dead wrong; there is no global U.S. income
> tax on IMF, World Bank, IDB, or UN related workers
> abroad ( regardless if they are American or G4
> visa holders). All of these organizations are
> headquatered in the States, and, if their
> employees are assigned to work here, they must pay
> state and federal taxes. If, however, they are
> given a multi year assignment abroad, then their
> earnings are tax free.

You, sir, are wrong as well. I'll let this thread stew a while before I give the correct answer. Just to see the lulz.

Vijay Patel Wrote:
-------------------------------------------------------
> bank on this Wrote:
> --------------------------------------------------
> -----
> > rogerklotz Wrote:
> >uu
> --------------------------------------------------
>
> > -----
> > > They are an international organization
> > therefore
> > > their employees are often here on assignments.
>
> > > With that being said they aren't exempt from
> > their
> > > home country's federal taxes. Same applied
> to
> > me
> > > while I was living abroad, I didn't file
> taxes
> > > with my host country however the IRS has what
> > is
> > > called a Global Tax which is filed by
> Americans
> > > living abroad. Either way they get taxed
> > most
> > > of the time it is by their host country which
> > is
> > > fine by me. Think about it they have to shop
> > on
> > > our economy and every dollar they spend here
> > goes
> > > into our economy. What I find bs is the fact
> > that
> > > diplomats are exempt from value added
> tax
> > > which their low life friends try to use to at
> > > department stores and bitch when they get
> > busted.
> >
> >
> > You are dead wrong; there is no global U.S.
> income
> > tax on IMF, World Bank, IDB, or UN related
> workers
> > abroad ( regardless if they are American or G4
> > visa holders). All of these organizations are
> > headquatered in the States, and, if their
> > employees are assigned to work here, they must
> pay
> > state and federal taxes. If, however, they are
> > given a multi year assignment abroad, then
> their
> > earnings are tax free.
>
> You, sir, are wrong as well. I'll let this thread
> stew a while before I give the correct answer.
> Just to see the lulz.


Really, Vijayjay? If they work/live abroad long term it is tax free. Long term USA based assignments include income taxation.

I work at the World Bank - here are the basics on a complicated system. US citizens working for the Bank pay US federal and state taxes just like any other US citizen. The US never signed the Treaty on the privileges and immunities of the specialized agencies - so US citizens pay taxes. Non US citizens pay taxes on their investment earnings plus sales taxes and property taxes in the US. They do not pay federal or state taxes. They may pay taxes in their home country unless their country signed the treaty - which would make their salary tax exempt. So, salaries vary based on your tax status. Staff who have the same grade make different amounts based on if they need to pay taxes. If you don't pay taxes, you make a net salary. If you pay taxes you make a net salary plus an adjustment for taxes - to make things even for everyone. This applies to regular staff. There are a lot of contractors who negotiate a set pay - so it may be different for them

Only future Treasury Secretaries don't pay their taxes! They can't figure out the tax code but expect the rest of us to!

World Bank basics Wrote:
-------------------------------------------------------
If you don't pay taxes, you make a net
> salary. If you pay taxes you make a net salary
> plus an adjustment for taxes - to make things even
> for everyone. This applies to regular staff. There
> are a lot of contractors who negotiate a set pay -
> so it may be different for them

An 'adjustment' for the taxes you pay? That would be almost like.....not paying taxes. Only suckers pay taxes I suppose.

semantics Wrote:
-------------------------------------------------------
> World Bank basics Wrote:
> --------------------------------------------------
> -----
> If you don't pay taxes, you make a net
> > salary. If you pay taxes you make a net salary
> > plus an adjustment for taxes - to make things
> even
> > for everyone. This applies to regular staff.
> There
> > are a lot of contractors who negotiate a set pay
> -
> > so it may be different for them
>
> An 'adjustment' for the taxes you pay? That would
> be almost like.....not paying taxes.

Better way to look at it is that someone is paying the taxes on your income, but it is the employer rather than you.

Bill.N. Wrote:
-------------------------------------------------------
> semantics Wrote:
> --------------------------------------------------
> -----
> > World Bank basics Wrote:
> >
> --------------------------------------------------
>
> > -----
> > If you don't pay taxes, you make a net
> > > salary. If you pay taxes you make a net
> salary
> > > plus an adjustment for taxes - to make things
> > even
> > > for everyone. This applies to regular staff.
> > There
> > > are a lot of contractors who negotiate a set
> pay
> > -
> > > so it may be different for them
> >
> > An 'adjustment' for the taxes you pay? That
> would
> > be almost like.....not paying taxes.
>
> Better way to look at it is that someone is paying
> the taxes on your income, but it is the employer
> rather than you.

You are a regular joe, making 100K a year and taking home 70K after all your deductions. Now that World Bank (or UN or IMF) regular Jose makes a 100K per year, but since he has to pay US taxes, he get's a 30K true up, so he still takes home 100K cash money. No matter how the name the various approaches to this or who pays it, it's effectively tax free.

How much does GE pay in taxes

bank on this Wrote:
-------------------------------------------------------
> rogerklotz Wrote:
> --------------------------------------------------
> -----
> > They are an international organization
> therefore
> > their employees are often here on assignments.
> > With that being said they aren't exempt from
> their
> > home country's federal taxes. Same applied to
> me
> > while I was living abroad, I didn't file taxes
> > with my host country however the IRS has what
> is
> > called a Global Tax which is filed by Americans
> > living abroad. Either way they get taxed and
> most
> > of the time it is by their host country which
> is
> > fine by me. Think about it they have to shop
> on
> > our economy and every dollar they spend here
> goes
> > into our economy. What I find bs is the fact
> that
> > diplomats are exempt from value added sales tax
> > which their low life friends try to use to at
> > department stores and bitch when they get
> busted.
>
>
> You are dead wrong; there is no global U.S. income
> tax on IMF, World Bank, IDB, or UN related workers
> abroad ( regardless if they are American or G4
> visa holders). All of these organizations are
> headquatered in the States, and, if their
> employees are assigned to work here, they must pay
> state and federal taxes. If, however, they are
> given a multi year assignment abroad, then their
> earnings are tax free.


http://www.irs.gov/businesses/small/international/article/0,,id=97284,00.html

Aliens Who Keep Immigrant Status

If you file the waiver provided by section 247(b) of the Immigration and Nationality Act (Immigration Form I-508) to keep your immigrant status, you no longer qualify for the exemption from U.S. tax under U.S. tax law from the date of filing the waiver with the Attorney General.

However, you do not lose the exemption if you file the waiver and meet either of the following conditions:

You are exempt from U.S. tax by an income tax treaty, consular agreement, or international agreement between the United States and your country, or
You work for an international organization if the international agreement creating the international organization provides that alien employees are exempt from U.S. income tax. Two international organizations that have such a provision are the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank).

Fairfaxunderground rules: Lilliputions, not ok. Midgettville ok. I got it now.

The correct [and very abridged] answer is both YES and NO.

As per the IRS document referenced above this depends largely on 1) the citizenship and immigration status of the individual in question; and 2) whether the work was performed within the United States or abroad.

American citizens often get the proverbial tax-shaft under this arrangement; to boot it makes filing taxes correctly exceptionally difficult without professional advice or preparation assistance.

My wife works at the World Bank. Yes, we pay federal tax. You people who state otherwise, stop lying. Idiots. Only under rare circumstances do personnel not pay, the majority do.



Edited 1 time(s). Last edit at 03/04/2012 01:23PM by Henlarious.

You think that is something my friend worked for Solyndra. He helped drive the company into bankruptcy and then received a bonus for doing so. And oh yeah that was with tax payer dollars.

Work at World Bank - just paid my 40K in taxes - paid account $1000 to do my taxes because they gat so complicated by working there.

jsm76 Wrote:
-------------------------------------------------------

> American citizens often get the proverbial
> tax-shaft under this arrangement; to boot it makes
> filing taxes correctly exceptionally difficult
> without professional advice or preparation
> assistance.


I believe the current term for that is 'your fair share'. So sad for you that you have to pay taxes like the rest of us. We get the tax-shaft all the time.

Justin Sane Wrote:
-------------------------------------------------------
> Anyone know anyone who works for the World Bank?
> Do they really not pay Federal taxes? How can
> that be?
>
> How difficult is it to land a job at the World
> Bank or say the IMF? Your thoughts appreciated.

Are you, perchance, mixing up "withholding" with "paying taxes"?

Chances are that the World Bank, as a foreign entity, doesn't withhold Federal taxes from employees paychecks. That doesn't mean that the employee isn't responsible for paying their taxes though. Quite the opposite, I bet they have to do the quarterly estimated tax crap that most self-employed folks have to.

So there you have it. Uncle Sam demands his pound of flesh, no matter who you work for. How he gets it, though, can be different...

SOME WB employees pay no income tax. The same employees who also get their own WB Diplomat plates...ugh.

Near George Mason Wrote:
-------------------------------------------------------
> Work at World Bank - just paid my 40K in taxes -
> paid account $1000 to do my taxes because they gat
> so complicated by working there.


Ooooh - you had to pay an accountant - much like anyone who owns a business, works for himself, etc. You have reached the lofty height of a handyman or lawn service. Grow the fuck up - what do you think the rest of country that isn't W-2 has to do?

Near George Mason Wrote:
-------------------------------------------------------
> Work at World Bank - just paid my 40K in taxes -
> paid account $1000 to do my taxes because they gat
> so complicated by working there.

If you paid $40,000 in taxes, you need to get a Jew accountant next time. Or use the free help the WB Tax Office provides. That's what it's there for, dickweed.

And get those goddamned Philipinos out of there! They're like an infestation!

as stated a few posts above, SOME WB employees do not pay fed or state tax, but not ALL WB employees have that benefit. G4 visa holders in particular do not pay uncle sam, this i know for a fact. being in mortgage lending i've had several WB employee loans come across my desk, and every last one is a royal PITA due to this fact. lending these days, with respect to validating a potential borrower's income, involves obtianing the IRS 4506 transcript on them. if they dont file with uncle sam, there's no 4506 to pull, so you can guess how those loans go.

yes its true Wrote:
-------------------------------------------------------
> as stated a few posts above, SOME WB employees do
> not pay fed or state tax, but not ALL WB employees
> have that benefit. G4 visa holders in particular
> do not pay uncle sam, this i know for a fact.
> being in mortgage lending i've had several WB
> employee loans come across my desk, and every last
> one is a royal PITA due to this fact. lending
> these days, with respect to validating a potential
> borrower's income, involves obtianing the IRS 4506
> transcript on them. if they dont file with uncle
> sam, there's no 4506 to pull, so you can guess how
> those loans go.


Upside - No Taxes

Downside - PITA mortgage process

where can we sign up?

yes its true Wrote:
-------------------------------------------------------
> as stated a few posts above, SOME WB employees do
> not pay fed or state tax, but not ALL WB employees
> have that benefit. G4 visa holders in particular
> do not pay uncle sam, this i know for a fact.
> being in mortgage lending i've had several WB
> employee loans come across my desk, and every last
> one is a royal PITA due to this fact. lending
> these days, with respect to validating a potential
> borrower's income, involves obtianing the IRS 4506
> transcript on them. if they dont file with uncle
> sam, there's no 4506 to pull, so you can guess how
> those loans go.

I've known several WB employees who are actually Americans and they
told me that the WB didn't deduct taxes from their paychecks but they
had to set the money aside themselves for when they settle up with
Uncle Sugar in April. Tough shit about the loans for foreigners
though. If they buy a house here they'll never go back to Bonga Bonga.

This has been a very informative thread of information. In general I agree with how the World Bank, IMF, PAHO, IDB, and OAS to name a few international organizations treat their employees taxwise. Whether they are US citizen , resident with or without waiver and G-4. Again the big distinguishing factor is the Big E being an employee. What I do not understand is how contractors be them G-4 or particularly residents are not required to pay taxes or file income tax returns because there are no 1099MISC issued.

Once you become a contractor the whole theory changes. This right in the WHite House back yard,with all the press reports and no one has picked up on $10-$15K month contractors that pay zero taxes. Tax law wise does not fly once they step out of employee status. Any comments welcomed have had to drop alot of clients because of this issue.

Contractors aren't on G4 visas, because fuck you. Of course there's a 1099 issued. And my grass is starting to grow again, so I'm gonna need you and your crew pretty soon.

Consultants/Contractors are on G-4 visas. I have been around these organizations for 20 years and have an idea so watch your language rookie.

Cesar Wrote:
-------------------------------------------------------
> Consultants/Contractors are on G-4 visas. I have
> been around these organizations for 20 years and
> have an idea so watch your language rookie.


No, they're not. They are largely U.S. citizens/residents or furriners on H1B and B-1 visas. Because fuck you. Now hop to it, that grass isn't gonna cut itself.

Again wrong Contractors, there are many independent contractors floating around these international organizations on G-4 visas ,which should only be issued to employees. Secondly, there are many residents as independent contractors and again they should pay taxes.

So eat some grass it may do your inbred DNA some good.

Well, as you well know, beaners have no problem violating their visa requirements. It's like you said WB contractors are rapists and I said they're not, and now you're saying yes, some of them VIOLATE the LAW and rape, therefore you're right. Don't quit your day job, my grass is getting tall and I might have to go with another service, because fuck you.

Piso mojado!

For a fact: A4 and G4 visas working for WB, IDB, UN pay no income tax or SE tax.
For a fact: US Citizens working for WB, IDB, UN pay income and SE tax
Uncertain: What should a green card be paying? I believe it is income tax,
and no SE tax. Am trying to get official verification.

You're probably both right. There are people on G4 and H1bs working on W-2s and 1009-MISCs. With a W2, they can also negotiate a substantial per diem which leaves much of the pay exempt from both income taxes and payroll taxes.

Do kids of employees still get free college tuition if they attend University outside of the United States? I remember in the 80's and 90's that to be true.

Lester Wrote:
-------------------------------------------------------
> You're probably both right. There are people on
> G4 and H1bs working on W-2s and 1009-MISCs. With a
> W2, they can also negotiate a substantial per diem
> which leaves much of the pay exempt from both
> income taxes and payroll taxes.

You're wrong about G4.

penelope j Wrote:
-------------------------------------------------------
> For a fact: A4 and G4 visas working for WB, IDB,
> UN pay no income tax or SE tax.
> For a fact: US Citizens working for WB, IDB, UN
> pay income and SE tax
> Uncertain: What should a green card be paying?
> I believe it is income tax,
> and no SE tax. Am trying to get official
> verification.

Just call the WB main number and ask for the Tax Office. My recollection is no tax for Green Card holders, but that could be wrong.

You can file as employee or consultant (self-employed).

http://www.imf.org/external/np/adm/rec/policy/oth/depwkauth.htm

Independent Wrote:
-------------------------------------------------------
> You can file as employee or consultant
> (self-employed).
>
> http://www.imf.org/external/np/adm/rec/policy/oth/
> depwkauth.htm


Fuck no to that. That page is talking about G-4 DEPENDENTS, who are NOT employees of an international organization. Because, sadly, fuck you.

With regards to residents in international organizations fist step is if they signed the I-508 if so then taxed on their income and they go through the reimbursement process and send quarterly estimated taxes.

Now when it comes to SE tax they are exempt Code section 1402(b) and Reg 1.1402(b)

Hope this helps.

Many, many years ago... my father worked at the World Bank and he was NOT a U.S. citizen. What I heard him say on a couple of occassions (back then) was that although he did pay U. S. Federal income taxes, the World Bank reimbursed those amounts. But again, that was back in the 1970's and 80's. I don't know if this is still done or was done away with.

There are over 1 million non-military citizens of the US currently living abroad at any given time working on long term projects, working for corporations over seas, etc.

Guess what, they dont pay local income taxes in those countries either

I dont think this is a big deal as long as they aren't citizens.

I used to work there and they fired or let go many full time employees.

They have been trying since 1997 only to get the top tier employees with tax free rights and make the rest just temps with no benefits.


The first ones that got jilted was back years ago when the world bank turned their IT dept into all temps.

It was from there they saw the cost savings. Those making less than a million per year will be turned into temp jobs with no benefits ecept maybe from their contractor

call it what you want Wrote:
-------------------------------------------------------

>
> You are a regular joe, making 100K a year and
> taking home 70K after all your deductions. Now
> that World Bank (or UN or IMF) regular Jose makes
> a 100K per year, but since he has to pay US taxes,
> he get's a 30K true up, so he still takes home
> 100K cash money. No matter how the name the
> various approaches to this or who pays it, it's
> effectively tax free.

It's only "tax free" if you're looking at it from a bitter resentment point-of-view.

The federal government is getting revenue from these employee's labor, so your only gripe is that they take home more money than you do.

Bitter Resentment Wrote:
-------------------------------------------------------
> call it what you want Wrote:
> --------------------------------------------------
> -----
>
> >
> > You are a regular joe, making 100K a year and
> > taking home 70K after all your deductions. Now
> > that World Bank (or UN or IMF) regular Jose
> makes
> > a 100K per year, but since he has to pay US
> taxes,
> > he get's a 30K true up, so he still takes home
> > 100K cash money. No matter how the name the
> > various approaches to this or who pays it, it's
> > effectively tax free.
>
> It's only "tax free" if you're looking at it from
> a bitter resentment point-of-view.
>
> The federal government is getting revenue from
> these employee's labor, so your only gripe is that
> they take home more money than you do.


Lots of people, many times more than those who work at WB, generate revenue for the federal government.

And they still pay taxes.

Weak Justification Wrote:
-------------------------------------------------------
> Bitter Resentment Wrote:
> --------------------------------------------------
> >
> > It's only "tax free" if you're looking at it
> from
> > a bitter resentment point-of-view.
> >
> > The federal government is getting revenue from
> > these employee's labor, so your only gripe is
> that
> > they take home more money than you do.
>
>
> Lots of people, many times more than those who
> work at WB, generate revenue for the federal
> government.
>
> And they still pay taxes.


You missed the whole point. Their taxes to the federal government are getting paid, they just get compensated for it by their employer.

It really isn't any different from some executive stock bonus packages where they negotiate a certain compensation amount, and then they calculate how many shares to option in order to meet that amount after taxes.

What is the difference between someone earning $130k in order to compensate them for the $30k in taxes they paid, and someone earning $130k? It's a shell game, and you only resent it because you don't make that much.