Provision of tax equalization services & tax advice

Item Description:

The Global Fund to Fight AIDS, Tuberculosis and Malaria (the “Global Fund”) invites all potential suppliers (the “Bidders”) to submit proposals for the above-captioned Request for Proposals (RFP).

This RFP is comprised of the following sections and attachments:

• Section 1: Terms of Reference
• Section 2: Proposal Requirements and Evaluation
• Section 3: Proposal Submission
• Section 4: Legal Matters
• Annex 1: Certificate of Conformance
• Annex 2: The Global Fund Terms and Conditions of Purchase of Services (“Terms and Conditions”)
• Annex 3: Cost Proposal Template

The Global Fund is seeking proposals from qualified suppliers to provide Taxation Services as described in “Tasks” below.

Background

Founded in 2002, the Global Fund is a financing institution, providing support to countries in the response to three diseases: AIDS, tuberculosis and malaria. It is a financing institution, providing support to countries in the response to AIDS, tuberculosis and malaria. Global Fund staff, all based in Geneva, Switzerland, comefrom all professional backgrounds and from more than 100 different countries.

The organization raises and invests nearly US$4 billion a year to support programs run by local experts in countries and communities most in need, through partnership between governments, civil society, the private sector and people affected by the diseases

The Global Fund operates in Switzerland under a Headquarters Agreement concluded between the Global Fund and the Swiss Federal Council in 2004. Under this agreement, the Global Fund enjoys privileges and immunities in Switzerland, including exemption from all federal, cantonal and communal taxes on salaries, emoluments and indemnities paid to Global Fund staff by the Global Fund. In accordance with the Headquarters Agreement between the Swiss Federal Council and the Global Fund, Internal Taxation has been implemented with effect from 1 January 2013.

The Global Fund Tax Equalisation Policy defines the application of tax equalisation for Global Fund staff. Staff members covered by that policy are reimbursed for taxes and mandatory social security due on their Global Fund employment income.

The Tax Equalisation Policy applies principally to the following categories of staff members:

(1)     Staff members who are subject to a worldwide income tax system (notably US nationals and green-card holders) and subject to taxation on their Global Fund income. The Global Fund reimburses taxes due on Global Fund income to these staff members;

(2)     Staff members who have been continuously employed and living in France since 1 January 2009 and who are subject to French income tax on their Global Fund income are also equalized for such taxes (tax equalization does not apply in case of employees employed or taking up residence in France after 01 January 2009.

(3)   As Switzerland retains the option of taking into account wages, salaries and other tax-exempt items of income for determining the rate of taxation on other ordinarily taxable items of income (such as spousal income subject to tax in Switzerland), in specific circumstances and for legacy reasons, this differential in Swiss tax due is also reimbursed by the Global Fund to a small legacy pool of eligible employees (i.e. those who transferred to the Global Fund from the World Health Organization whose eligibility to receive such tax reimbursement was grandfathered under their special terms and conditions), upon request.

Scope/Objective

The selected supplier will be expected to provide:

(1)       Tax equalization advice to the Global Fund in relation to US taxes (federal and state) on Global Fundincome, including calculations of tax equalization amounts due and annual reconciliations. In the first yar of employment only, preparation of US tax return and US State tax return (if required)

(2)       Tax equalization advice to the Global Fund in relation to French taxes on GF income for a limited group of eligible employees, including calculation of monthly tax allowance (tax equalization amount) and annual reconciliations

(3)       Tax equalization advice to the Global Fund in relation to Swiss taxes for a small legacy group of eligible employees whose special terms and conditions enabled them to request a reimbursement of Swiss taxes due to Global Fund income being taken into account in setting tax rate on non-Global Fund income, including calculations of tax equalization amounts due (if such equalization is in line withthe Global Fund Tax Equalization Policy).

(4)       Coordination services including: –

a)    communication with the Global Fund to provide payroll instructions for tax equalization amounts prepared

b)    calculating any tax allowance adjustments following reconciliations;

c)     communication with employees regarding their reconciliation status/tax returns (for US employees in their first year of employment only) and addressing any queries relating thereto

d)    Delivering presentations to US and French tax equalized employees on an annual basis or other tax related presentations on an ad hoc basis, as required;

e)    Annual review of French and US tax guides to reflect any changes in the law

(5)       Provide ad hoc advice at the Global Fund’s request for information on income tax and social security (employer and employee) arising in overseas countries where an employee may reside and work.  Such requests may include providing an estimated calculation of potential income tax and social security tax liabilities for employer and employee together with any employer reporting and withholding obligations.

(6)       Support with the following ad hoc requests, as required:

a)    providing assistance in any dealings with tax authorities at the Global Fund’s request, on an ad hoc basis, if required

b)    reviewing the internal taxation and Tax Equalization policies to ensure that they are up to date and reflect current practice

c)     prepare any employee communication as required.

Download RFP in English