In line with the Convention on the Privileges and Immunities of the United Nations, staff members are generally exempt from taxation on the salaries and allowances paid to them by the organization. This rule applies to international and locally recruited staff members, except those assigned to hourly rates and consultants and individual contractors. The General Assembly established a system to reimburse income taxes to those United Nations staff members who are required to pay taxes on their UN salaries and emoluments. This includes grossing up of net salaries through the addition (i.e. reverse application) of staff assessment at the rates prescribed in Staff Regulation 3.3. Staff assessment is a budgeting tool used to calculate gross salaries for the purposes of the operation of the Tax Equalization Fund established by General Assembly resolution 973(X) of 15 December 1955 to reimburse UN officials required to pay national income taxes (charged by those Member States that did not ratify the Convention on the Privileges and Immunities of the United Nations, or did so with a reservation with regard to its section 18 (b)). Gross salaries and staff assessment are not payable to UN officials.
Staff members who are nationals of the United States and staff members who are United States permanent residents are subject to United States laws, including those regarding taxation, payment of customs duties, etc. These staff members become liable for payment of United States taxes on emoluments earned from the UN as of the date of signing the waiver of privileges and immunities. Staff members are advised to contact the Income Tax Unit of the United Nations (https://www.un.org/Depts/oppba/accounts/tax/index.htm) for any questions regarding US Income Tax payments. The website contains the most up to date Information Circular, published annually by the Controller’s Office.
The UN reimburses those staff members who must pay the U.S. income taxes due on their UN earnings and partially reimburses self-employment taxes payable by U.S. citizens. Self-employment tax includes social security and Medicare, for which the UN reimburses the employer’s portion.
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