What is the tax status of World Bank debt instruments?
In general, World Bank debt instruments and the interest thereon are subject to taxation in accordance with the national and other tax laws applicable to the holders. Neither the World Bank nor its fiscal agents or paying agents are subject to withholding or back-up withholding tax requirements for interest payments on World Bank bonds. Accordingly, the interest due on the debt instruments is paid to the fiscal or paying agent without deduction in respect of any such tax. However, tax withholding requirements may apply to interest payments made by financial intermediaries acting in any capacity other than as the World Bank’s fiscal or paying agent. This summary of the tax treatment of World Bank instruments and the interest thereon is not intended as tax advice; investors considering the purchase of World Bank discount notes and bonds should consult their tax counsel or other experts for advice in this area.
