TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13-917

________________________________________________________________________

TAXATION

Reimbursement

Agreement Between the 

UNITED STATES OF AMERICA

and the INTERNATIONAL INSTITUTE FOR 

THE UNIFICATION OF PRIVATE LAW

Signed at Rome September 17, 2013 

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 INSTITUTE FOR THE

UNIFICATION OF PRIVATE LAW 

Taxation: Reimbursement

 Agreement signed at Rome September 17, 2013;

 Entered into force September 17, 2013.

 With annex.
TAX REIMBURSEMENT AGREEMENT BETWEEN

THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND

THE IN TERNATIONAL, INSTITUTE FOR THE UNIFICATION OF. PRIVATE LAW

This Agreement is made between the Government of the United States of America (hereinafter

"United States") and the International Institute for the Unification of Private Law (hereinafter

"UNIDROIT"), "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 staff members of UNIDROIT who are subject to United

States tax law as United States citizens or permanent resident aliens;

It is the intent of UNIDROIT 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 UNIDROIT 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 UNIDROIT (hereinafter "institutional income");
THE PARTIES AGREE AS FOLLOWS:

I. UNIDROIT shall reimburse UNIDROIT 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 UNIDROIT institutional income, as defined in the Annex to this

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

Agreement does not cover staff members paid from voluntary funds. An advance payment made

by UNIDROIT relating to the estimated tax liability of a staff member during a current year will

be treated as reimbursement, provided that such payment is effected by an instrument payable to

the Internal Revenue Service or counterpart body of the ta xing state or local government.

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

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

UNIDROIT 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.

UNIDROIT shall inform the staff members who seek teimbursement 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 UNIDROIT 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 UNIDROIT institutional

income" means the amount of UNIDROIT 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.UNIDROIT 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 UNIDROIT to UNIDROIT staff members and shall not be reimbursed by the United States to

UNIDROIT.

7.UNIDROIT shall require each UNIDROIT 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. UNIDROIT shall maintain separate accounting of the tax reimbursements covered by this

Agyeement UNIDROIT shall require each staff member receiving tax reimbursement to

authorize UNIDROIT 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. UNIDROIT shall require each staff member to provide

it with all the materials necessary to verify that the amounts claimed under this Agreement from

UNIDROIT are the same as the tax liability the staff member reports and the tax payments the

staff member in fact makes.

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

Revenue Service, or counterpart body oldie taxing state or local government, and checks 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 the present Agreement on reimbursement of Federal taxes

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

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

reimbursements have been made by UNIDROIT 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 UNIDROIT staff members reimbursed, the total of

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

income as defined in the Annex), the amounts reimbursed to UNIDROIT staff members, the tax

year for which reimbursement is made, the year in which reimbursement is made for each

category oftax specified in paragraph 1, and affirm that their salaries and benefits are paid from

the regular budget as required by paragraph 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, UNIDROIT shall file all tax reimbursement claims 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 UNIDROIT at the earliest possible date following receipt

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

paid by UNIDROIT with respect to preceding tax years, in accordance with this Agreement.

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

reimbursement for such reasonable and necessary expenses as UNIDROIT 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, 2012.
FOR THE INTERNATIONAL INSTITUTE

FOR THE UNIFICATION OF PRIVATE

LAW:

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 is

given in writing to the other Party.

17.Should the United States 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 modified to extend to UNIDROIT the benefit of

the former, subject to the agreement ofthe United States, which shall not unreasonably be

refused.

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

consultations between the Parties.

Done at Rome, in duplicate, in the English language this (4-44– day offr.r.....,°*-111.4.,,r 2013.

FOR THE GOVERNMENT OF THE

UNITED STATES OF AMERICA:
ANNEX

Particulars of Institutional Income

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

following particulars of compensation:

- Basic.salary

- Overtime

- Family allowances, i.e., spousal allowance, dependant's allowance, etc.

- Expatriate allowance

- Appointment and repatriation travel expenses, including transportation and removal of personal

effects

- Home leave: travel

- Termination indemnity

- Reimbursement of United States Federal, state, or local income tax payments and United States

self-employment tax payments on institutional income.

Should UNIDROIT approve the addition, modification, or deletion of any elements of

institutional income, this Annex may be modified by an exchange of letters, subject to the

agreement of the United States, which shall not be unreasonably refused.