Us Hong Kong Totalization Agreement

If you want more information on the U.S. Social Security Totalization Program – including details of the concrete agreements in force – you should write that social protection coordination agreements across national borders have been commonplace in Western Europe for decades. This is followed by a list of the agreements reached by the United States and the effective date of each. Some of these agreements were then revised; The date indicated is the date on which the original agreement came into force. The single-family home rule in U.S. agreements generally applies to workers whose interventions in the host country are expected to last 5 years or less. The 5-year limit for leave for exempt workers is much longer than the limit normally set by agreements in other countries. Since the late 1970s, the United States has established a network of bilateral social security agreements that coordinate the U.S. social security program with similar programs in other countries. This article provides a brief overview of the agreements and should be of particular interest to multinationals and people who work abroad during their careers. In addition to tax treaties, the United States also has totalization agreements with different countries. The objective of a totalization agreement is to avoid double payments of social security contributions in the United States and a foreign country.

Despite the fact that the agreements aim to allocate social security to the country where the worker is most attached, unusual situations occasionally arise, where strict enforcement of the rules of agreement would result in unusual or unjustified results. For this reason, each agreement contains a provision allowing the authorities of both countries to grant exemptions from the normal rules if both parties agree. An exception could be granted, for example, if the foreign award of a U.S. citizen was unexpectedly extended by a few months beyond the 5-year limit under the self-employed rule. In this case, the worker could benefit from ongoing U.S. coverage for the additional period. Any agreement (with the exception of the agreement with Italy) provides an exception to the territorial rule, which aims to minimize disruptions in the career of workers whose employers temporarily send abroad. Under this « self-employed » exception, a person temporarily transferred to service for the same employer in another country is covered only by the country from which he or she was seconded.

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