Totalization Agreement

What is a social security totalization agreement?

Social Security Totalization Agreements protect international companies, expatriates, and other multinational organizations from double taxation and still allow for the accumulation of work credit in either country. These credits can then be added together when applying for benefits. The United States currently has totalization agreements with 24 nations. Each agreement is in accordance with specific rules for qualifying, applying, and receiving retirement benefits.  

Foreign Countries with U.S. Totalization agreements

Australia

Austria

Belgium

Canada

Chile

Czech Republic

Denmark

Finland

France

Germany

Greece

Ireland

Italy

Japan

Luxembourg

Netherlands

Norway

Poland

Portugal

South Korea

Spain

Sweden

Switzerland

United Kingdom

While most totalization agreements have similar wording and implementation, each agreement must be individually addressed to achieve maximum benefits. As an example; for a U.S. citizen, two months of work in Australia doesn't produce work credits in the U.S. if work is done in the U.S. for the other month during that quarter. Expatriate taxation, foreign tax credits, export tax incentives, and even foreign insurance all become important modifiers to taxable income requirements. These same benefits can also come in the form of earned credits in either the originating or hosting country. 

Other items that can be affected by totalization agreements include:

  • Trust estate planning
  • Medicare planning
  • Foreign tax credits
  • Work credits
  • Health insurance
  • Retirement benefits
  • Tax liabilities
  • Filing procedures

Expatriates and multinational companies can both benefit from understanding how totalization agreements are applied. Contact PIASCIK international tax professionals today and we can help ensure you are getting the maximum benefits.

Professional consultations that save money

PIASCIK international tax professionals are well versed on the totalization agreements the U.S. has with other countries. Our international tax professionals are recognized as industry peers within the international tax community. PIASCIK members include the president of the Virginia International Business Council who is also an NFLPA Registered Player Financial Advisor. Our clients span 49 countries and nearly every continent. (We're still waiting for upcoming prospects in Antarctica.) With over 75 years of combined firsthand knowledge, experience, and applications, PIASCIK understands how much a totalization agreement can help prevent double taxation and give you or your company much needed tax incentives that can ultimately affect the bottom line.

We know how important your time is, so PIASCIK international tax professionals provide world class service accessibility 24 hours a day and 7 days a week. Contact PIASCIK today for a FREE initial consultation for you to experience it for yourself without any obligations from you. No other international tax firm has our commitment, experience, business model and ability to understand changing international tax practices as they are happening.