Any foreigner wishing to apply for an exemption from U.S. Social Security and Medicare taxes on the basis of a totalization agreement must obtain an insurance certificate from the social security authority of his country of origin and present such proof of insurance to his employer in the United States, in accordance with procedures 80-56, 84-54 and Ruling 92-9. An alternative procedure is provided in these revenue procedures for a foreigner who is unable to obtain a certificate of coverage from his country of origin. Spain and Portugal are covered by both a bilateral agreement and the Treaty of the Ibero-American Social Security Organization. If you have credits in both the United States and Italy, you may be eligible for benefits from one or both countries. If you meet all the essential requirements under a country`s system, you will benefit regularly from that country. If you don`t meet the basic requirements, the agreement can help you qualify for a performance, as explained below. Workers who are exempt from U.S. or foreign social security contributions under an agreement must document their exemption by obtaining a country coverage certificate that continues to cover it. For example, an American worker temporarily posted to the UK would need a SSA-issued coverage certificate to prove his exemption from UK social security contributions. Conversely, a UK-based employee working temporarily in the Us would need a certificate from the British authorities to prove the exemption from the US Social Security Tax. The European Community (EC) social security provisions do not replace the various national social security systems with a single European system. This would not be possible because of the large differences in living standards and social security systems between Member States.
However, according to the European Commission, the following is that any totalisation agreement has an exception for international workers. Under this exception, a person temporarily transferred to the service for the same employer in another county is covered only by the national form he or she received. Workers and employers continue to pay contributions to the national social security system. While social security obligations may be one of the main contributions employers will pay when they decide to send a worker to an international mission, social security can also be one of the most neglected aspects of the compensation package. The main social security issues affecting both employers and workers going abroad are: (Note: Only students are covered by the agreement with Vietnam). Normally, people who are not U.S. citizens can receive U.S. Social Security benefits when they are outside the U.S., only if they meet certain requirements. However, according to the agreement, you can receive benefits as long as you reside in Italy, regardless of your nationality. If you are not a U.S. citizen and you live in another country, you may not be able to receive benefits. Restrictions on U.S.
services are explained in the publication Social Security – Your Payments While You Are Outside The United States (Publication No. 05-10137). Totalization agreements are extremely important because American expatriates who live and work abroad can face double taxation when it comes to social security if such an agreement does not exist. You are especially important when you are independent. There are usually specific rules on autonomy and social security and it is important to understand all the details if you are in a country with which the United States has a totalization agreement.