A self-employed person residing in the territory of a State Party shall be subject only to the law of that State. As of March 1, 2019, the United States has entered into totalization agreements with 30 countries – Australia, Austria, Belgium, Brazil, Canada, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, Norway, Poland, Portugal, the Slovak Republic, Slovenia, South Korea, Spain, Sweden, Switzerland, the United Kingdom and Uruguay. That`s right, John. Many totalization agreements allow extensions beyond the five-year term. However, the agreement between the United States and Brazil contains a special provision stipulating that an extension is only allowed if the person has not been in the host country for at least six months. The information contained therein is of a general nature and is not intended to respond to the circumstances of a particular natural or legal person. Although we strive to provide accurate and timely information, it cannot be guaranteed that such information is accurate at the time of receipt or that it will remain correct in the future. No one should react to this information without appropriate professional advice after a thorough examination of the situation. Tax treaties and tabons agreements have been saved JOHN SEERY: Okay, we`re running out of time, but I`d just like to come back to a point that was made at the beginning of our discussion.
One of the main advantages of this totalization agreement between the United States and Brazil is that it can only pay one Social Security tax instead of two. Where a person has completed at least 6 (6) quarters of insurance in accordance with the laws of the United States, however, he does not have sufficient periods of insurance to qualify for benefits under the legislation of the United States, the competent institution of the United States shall take into account the periods of coverage in determining entitlement to benefits under this Article: that are credited under Brazilian law and do not correspond to periods of coverage already credited under U.S. law. And that can be a problem for international operations. How does the totalization agreement prevent this? – Yes. Well, without going into details, yes, this agreement has a special regime for people who have worked temporarily in a third country. Recently, it was announced that the Social Security Totalization Agreement (SSTA) between the United States and Brazil will definitively enter into force on October 1, 2018. It is estimated that about 1.3 million Brazilians and 35,000 Americans will benefit from this agreement.
The competent institution of a Contracting State shall take into consideration only periods of insurance eligible under the law of the other State Party, only under the legislation of the first Contracting State. We asked our international social security expert, Bob Rothery, in San Diego, to comment on the details of the deal. Welcome, Bob. First of all, Bob, remember, what is a totalization agreement? The CONTACT FOR MORE INFORMATION section contains the name and phone number of someone in your agency who can answer questions about the document. It can list two or more contact persons on different aspects of a document. Where the law of the United States is based in accordance with the provisions of paragraph 1 of this Article, the competent institution of the United States shall calculate a proportionate initial amount of insurance in accordance with the laws of the United States on the basis of: the competent authorities or competent institutions transmitting personal data shall take all appropriate measures to ensure: that the personal data transmitted are correct and limited to the data necessary for the completion of the receipt. Application by the competent authority or institution. . . .