Does the US Have a Totalization Agreement with Brazil?
If you are a US citizen working in Brazil or a Brazilian citizen working in the US, you may have questions about Social Security contributions and benefits. One of the most common questions is whether the US has a totalization agreement with Brazil.
In short, the answer is yes. The US and Brazil have had a totalization agreement since 2018. This agreement is known as the US-Brazil Social Security Totalization Agreement.
What is a Totalization Agreement?
A totalization agreement is a treaty between two countries that eliminates dual Social Security tax liability for workers who divide their careers between the two countries. It ensures that workers do not pay Social Security taxes to both countries on the same earnings.
Totalization agreements also allow workers to count their contributions to both countries` Social Security systems towards meeting their eligibility requirements for benefits. This means that workers will not be penalized for dividing their career between two different countries.
What Does the US-Brazil Totalization Agreement Cover?
The US-Brazil Totalization Agreement covers Social Security contributions and benefits for US and Brazilian citizens who work in both countries. It applies to workers who are:
– Employed in one country and self-employed in the other country
– Employed by a company that has headquarters in one country, but temporarily posted to work in the other country
– Employed by a company that has subsidiaries in both countries
Under the agreement, workers will only be subject to Social Security taxes in the country where they are working. They will not have to pay taxes to both countries on the same earnings.
In terms of benefits, the US-Brazil Totalization Agreement ensures that workers who divide their career between the two countries can qualify for benefits more easily. For example, a worker who has contributed to both the US and Brazilian Social Security systems can combine their contributions to meet the eligibility requirements for benefits in either country.
If you are a US citizen working in Brazil or a Brazilian citizen working in the US, it is important to understand the Social Security contributions and benefits available to you. The US-Brazil Totalization Agreement ensures that you will not be subject to dual Social Security tax liability and that you can qualify for benefits more easily.
As always, it is important to consult with a qualified tax or Social Security expert to ensure that you are complying with all requirements and maximizing your benefits.