Totalization Agreement Brazil

And that can be a problem for international operations. How does the totalization agreement prevent this? We asked our international social security expert, Bob Rothery, in San Diego, to comment on the details of the deal. Welcome, Bob. First of all, Bob, remember, what is a totalization agreement? There is not enough time, but I would just like to come back to a point that was made at the beginning of our discussion. One of the main advantages of this totalization agreement between the United States and Brazil is that it can only pay one Social Security tax instead of two. On 30 June 2015, Brazil and the United States signed a totalization agreement, introduced into Brazilian legislation by Decree No. 9.422 and entered into force on 25 June 2018. From 1 October 2018, the agreement entered into force and applies throughout Brazil. Thank you, and I`m glad to be with you today, John. The aggregation agreement is therefore like a mini-contract that prevents a double social security tax and it also coordinates the provision of certain social security benefits. The agreement with Brazil was therefore already signed in June 2015, and it is the 27th of the United States. Well, Bob, a lot of employers are trying to figure out the impact of the deal on their American workers who are already in Brazil and vice versa.

What else can you tell us? Tax and aggregation agreements have been saved It must be borne in mind that aggregation agreements are international contracts aimed at guaranteeing the social security rights of insured persons and their nationals of the candidate countries. For nationals of Brazil and the United States who have worked at both sites, this agreement will help meet the qualification requirements for certain retirement, disability and survivors` benefits (sum of benefits). In addition, the agreement deals with possible double taxation of social security for cross-border employment scenarios. For example, the U.S. social security system requires 40-quarters of contributions to qualify for Social Security benefits. An employee with 20 quarters of coverage in the U.S. and 20 quarters of coverage in Brazil would not have previously had the duration of coverage needed to obtain U.S. Social Security benefits. Under the deal, the worker`s 20 work credits in Brazil would help him reach the U.S. threshold needed to qualify for partial benefits under the U.S. system.