TREATIES AND OTHER INTERNATIONAL ACTS SERIES 14-303.1

________________________________________________________________________

TAX

Reimbursement

Agreement Between the

UNITED STATES OF AMERICA

and the INTERNATIONAL CENTRE FOR

THE STUDY OF THE PRESERVATION AND 

RESTORATION OF CULTURAL PROPERTY

Signed at Rome March 3, 2014

with

Annex
 NOTE BY THE DEPARTMENT OF STATE

 Pursuant to Public Law 89—497, approved July 8, 1966

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued

under the authority of the Secretary of State shall be competent

evidence . . . of the treaties, international agreements other than

treaties, and proclamations by the President of such treaties and

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime

jurisdiction, and in all the tribunals and public offices of the

United States, and of the several States, without any further proof

or authentication thereof.”
 INTERNATIONAL CENTRE FOR THE 

 STUDY OF THE PRESERVATION AND

 RESTORATION OF CULTURAL PROPERTY

 

 Tax: Reimbursement

 Agreement signed at Rome March 3, 2014;

 Entered into force March 3, 2014.

 With annex. 
TAX REIMBURSEMENT AGREEMENT BETWEEN THE UNITED STATES OF AMERICA

AND THE INTERNATIONAL CENTRE FOR THE STUDY OF THE PRESERVATION AND

RESTORATION OF CULTURAL PROPERTY

This Agreement is made between the United States of America (hereinafter "United States") and

the International Centre for the Study of the Preservation and Restoration of Cultural Property

(hereinafter "ICCROM"), herein after called "the Parties."

It is the intent of the United States to assume sole responsibility pursuant to this Agreement for

funding the reimbursement of taxes to directly employed staff members (hereinafter "staff

members") of ICCROM who are subject to United States tax law as United States citizens or

permanent resident aliens;

It is the intent of ICCROM to place the reimbursement of United States income tax to its staff

members on a sound basis; and

The Parties are desirous of concluding an agreement on reimbursement to ICCROM staff

members of United States Federal, state, and local income tax and self-employment tax levied

under United States law on the income they receive as compensation for official services

rendered to ICCROM (hereinafter "institutional income");
THE PARTIES AGREE AS FOLLOWS:

1.ICCROM shall reimburse the ICCROM staff members paid from the regular budget who are

liable for and pay United States Federal self-employment tax and United States Federal, state,

and local income taxes on their ICCROM institutional income, as defined in the Annex of this

Agreement, for the amount of those taxes, under the terms and conditions set forth below. This

Agreement does not apply to any reimbursement of taxes by the ICCROM on income not

included in the Annex. This Agreement does not cover staff members paid from voluntary

funds. An advance payment made by ICCROM relating to the estimated tax liability of a staff

member during a current year shall be treated as reimbursement under this Agreement, provided

that such payment is effected by an instrument payable to the Internal Revenue Service or

counterpart body of the taxing state or local government.

2. Subject to the availability of appropriated funds, the United States shall reimburse ICCROM

for each taxpayer an amount not to exceed the tax that would be due if the specified categories of

ICCROM income were the taxpayer's only income, taking into account any special tax benefits

available to United States taxpayers employed abroad, as well as the deductions and personal

exemptions otherwise allowed.

3. ICCROM shall inform the staff members who seek reimbursement of taxes under this

Agreement that they are obligated to claim all deductions, exemptions, or exclusions to which

they are entitled under applicable tax legislation and regulations.

4. For purposes of United States Federal income tax, deductions, exemptions, and adjustments to

income shall be apportioned on a pro rata basis between taxable ICCROM institutional income

and private income for the purposes of calculating tax reimbursement, except where deductions

and exemptions relate to a specific category of income. "Taxable ICCROM institutional income"

means the amount of ICCROM income subject to tax after the application of the foreign earned

income exclusion.

5. Both parties shall take all possible measures to reduce or eliminate the burden resulting from

the cumulative effect of tax reimbursements being treated as taxable income.

6. ICCROM staff members who seek reimbursement of taxes under this Agreement are

themselves responsible for complying with any income tax laws applicable to them. Penalties,

interest, or other charges resulting from noncompliance with such laws shall not be reimbursed

by ICCROM to ICCROM staff members and shall not be reimbursed by the United States to

ICCROM.

7. ICCROM shall require each ICCROM staff member claiming tax reimbursement to determine

the status defined by United States tax law under which that staff member files an income tax

return, reimbursement being made on the basis of the status under which taxes are in fact being

paid.

8. ICCROM shall maintain separate accounting of the tax reimbursements covered by this

Agreement. ICCROM shall require each staff member receiving tax reimbursement to authorize

ICCROM to obtain confirmation from the United States Internal Revenue Service and state and
local government counterpart bodies, as appropriate of the tax liability of that staff member and

the payment of the tax due. ICCROM shall require each staff member to provide it with all the

materials necessary to verify that the amounts claimed under this Agreement from ICCROM are

the same as the tax liability the staff member reports and the tax payments the staff member in

fact makes.

9. Checks by ICCROM for payment of estimated taxes shall be made payable to the Internal

Revenue Service, or counterpart body of the taxing state or local government, and checks by

ICCROM for reimbursement of taxes already paid by a staff member shall be made payable to

the staff member concerned.

10.Reimbursement of the United States Federal self-employment taxes shall equal the difference

between the amount the staff member pays as a result of the staff member's classification as a

self-employed person, less any applicable tax credit arising from the same qualification, and the

amount the staff member would have to pay in social security (Old Age, Survivors and Disability

Insurance) taxes and health insurance (Medicare) taxes were the staff member classified as an

employee.

11. The principles embodied in this Agreement on reimbursement of Federal taxes equally

constitute the basis for the reimbursement of state and local taxes.

12. The United States shall reimburse ICCROM on the basis of a certification that

reimbursements have been made by ICCROM to United States citizens or others who are liable

to pay United States income taxes. The certification shall set forth the names and United States

social security numbers of the ICCROM staff members reimbursed, the total of ICCROM

income against which the United States tax has been paid (that is, institutional income as defined

in the Annex), the amounts reimbursed to ICCROM staff members, the tax year for which

reimbursement is made, the year in which reimbursement is made for each category of tax

specified in Article 1, and affirm that the salaries and benefits of the staff members reimbursed

are paid from the regular budget as required by Article 1. This information shall be provided

yearly to the United States by October 1 following the tax year for which the claim is made.

Without prejudice to the foregoing, ICCROM shall claim all tax reimbursements for a particular

tax year no later than 24 months from October 1 following the tax year for which the claim is

made.

13. The United States shall reimburse ICCROM at the earliest possible date following receipt of

the certification specified in Article 12 a sum sufficient to cover all tax reimbursements

documented by such certification that were paid by ICCROM with respect to preceding tax

years, in accordance with this Agreement.

14. Subject to the availability of funds, the United States and ICCROM may agree to a

reimbursement for such reasonable and actual necessary expenses as ICCROM may incur in

connection with the implementation of the administrative procedures required to carry out the

provisions of this Agreement.
15. This Agreement shall apply with regard to tax reimbursements for institutional income

earned on or after January 1, 2013.

16. This Agreement shall enter into force upon signature by the Parties and may thereafter be

terminated by either Party on December 31 of the year following the year in which notice of

termination is given in writing to the other Party.

17. Should the United States subsequently conclude a tax reimbursement agreement with any

other international organization substantially more favorable to that organization or its staff

members than the present Agreement, the latter shall be amended to extend to the ICCROM the

benefit of the former, subject to the written agreement of the United States and ICCROM, which

shall not unreasonably be refused by the United States.

18. Any difficulties arising from the implementation of this Agreement shall be resolved by

consultations between the Parties.

In witness whereof, the undersigned, being duly authorized thereto by their respective

Governments, have signed this Agreement.

Done at Rome, in duplicate, this 3rd day of March, 2014, in the English language.

FOR THE GOVERNMENT OF THE FOR THE INTERNATIONAL CENTRE

UNITED STATES OF AMERICA: FOR THE PRESERVATION AND

RESTORATION OF CULTURAL

PROPERTY:
ANNEX

Particulars of Institutional Income

"Institutional income," as used in this Tax Reimbursement Agreement, includes only the

following particulars of compensation:

- Basic salary

- Overtime

- Post adjustments

- Dependency allowances

- Education grant and related travel

- Repatriation grant

- Removal expenses

- Home leave travel

- Termination indemnity

- Accrued annual leave upon separation from service

- Reimbursement as stipulated in this agreement of United States Federal, state, or local income

tax payments and United States self-employment tax payments on institutional income.

Should ICCROM approve the addition, modification, or deletion of any elements of institutional

income, this Annex may be amended by written agreement of the Parties.