Indian Citizen working for World Bank in UK

Are they liable for tax on UK earnings

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If I am reading this correctly even if someone is tax resident in the UK and working for World Bank then they will not be liable for any UK tax on their employment earnigs.  The Tax on their employment is liable in India

I don't think its clear in the HMRC manuals

https://www.gov.uk/hmrc-internal-manuals/international-manual/intm860750

Replies (4)

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By paul.benny
29th Jan 2021 11:16

Some treaty organisations are, in effect, sovereign nations, even though they may apparently be based on UK soil. That means that their employees may not be liable for UK tax and NI. I don't know the status of World Bank in that respect.

This is a very niche area. Your client is best advised to seek advice from their employer in the first instance - and then they probably also need an accountant in India to advise. Other Indian employees of the World Bank may also be able to assist.

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Replying to paul.benny:
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By sanjay100
29th Jan 2021 11:45

Thanks for the reply

It seems to be that no tax is payable in the UK ?

This is because the Bretton Woods Agreement Order in Council (SI. 1946/36 giving effect to the international agreement which established the World Bank and the International Monetary Fund), and the Orders in Council for the International Development Association (SI. 1960/1383) and International Finance Corporation (SI. 1955/1954) allow member states of those organisations to tax the salaries of employees who are their own citizens,

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By paul.benny
29th Jan 2021 13:37

I'm only aware of the general principle but not how it applies to specific organisations or treaties.

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By Nourhan.M
03rd Jan 2024 17:58

Hi,
I'm working for the World Bank too, live in the UK but not a British Citizen. The WB team advised me that I exempted from the income taxes in the UK. I reported my income on my personal account taxes and would like to ask if you managed to claim a tax exemption on your income from the World Bank?

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