^

Brazilian Chamber of Deputies approves US-Brazil Social Security Agreement

Posted in Law, News, Taxation

Tax Information Exchange

As of 8 March, 218, the Brazilian Chamber of Deputies has approved the Brazil-United States Social Security Agreement (2015). There are similar Social Security Totalization Agreements made across the globe, with the United States in SSTA agreements with 26 other countries. These agreements are common for workers that will not be contributing enough to the social security system in the host country long enough to accrue a retirement benefit, yet is charged social security taxes in both the home and the host country. Until an agreement is made between countries, there is no credit mechanism to alleviate a double tax such as this.

The Brazil-United States Social Security Agreement states that a worker will pay social security taxes in the country where he provides services. A “detached worker” exception may be made if necessary, which states that if a worker is assigned by his employer to work in the host country for no more than five years, he will be exempt from the host country tax and continue to be subject to the home country tax. The employer of such a worker will need to apply for a Certificate of Coverage from the home country social security authorities in order to validate this exemption.

The US-Brazil agreement covers old age, survivor’s, and disability insurance systems of both countries do not apply to the Brazil Fundo de Garantia do Tempo e Serviço (FGTS), which is the Severance Indemnity Fund for employees.

Global HR & Mobility Market Updates

Meet the Founder of EMG – Global mobility service provider in Amsterdam

An interview: Nino Nelissen, owner of Executive Mobility Group

Hi Nino, welcome. Can you introduce yourself?
I am Nino Nelissen, sole founder and owner of EMG.

Read More

The Latest News on Taxation, Immigration System and Time-Keeping via Spreadsheet

– South Africa’s new expat tax and what it means for double taxation
– Trump is delivering on his promise to fix broken immigration system
– Quebec imposing values test for new immigrants

Read More