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Us Hong Kong Totalization Agreement

The goal of all U.S. totalization agreements is to eliminate dual social security and taxation, while maintaining coverage for as many workers as possible under the country where they are likely to have the most ties, both at work and after retirement. Any agreement aims to achieve this objective through a series of objective rules. Most U.S. agreements eliminate dual coverage of autonomy by allocating coverage to the worker`s country of residence. For example, under the US-Swedish agreement, an American citizen living in Sweden and living in Sweden is covered only by the Swedish system and is excluded from US coverage. Tax contracts and totalization agreements have been retained Requests must contain the name and address of the employer in the United States and the other country, the worker`s full name, place and date of birth, nationality, U.S. and foreign social security numbers, location and date of employment, and start and end date of transfer abroad. (If the employee works for a foreign subsidiary of the U.S. company, the application should also indicate whether U.S. Social Security Insurance has been agreed upon for employees of the related company pursuant to Section 3121 (l) of the internal income code.) Self-employed workers should indicate their country of residence and the nature of their self-employment. When applying for certificates under the agreements with France and Japan, the employer (or non-employee) must also indicate whether the worker and accompanying family members are covered by health insurance. U.S.

people abroad are also subject to Social Security, also known as the FICA Tax, named under the Federal Insurance Contributions Act. Taxpayers avoid double taxation under the provisions of the totalization agreements, also known as U.S. international social security conventions. At this stage, however, the United States has not yet entered into a totalization agreement with Hong Kong or China. Ted Kleinman will help you understand your social security tax as a Hong Kong resident. For example, if a person works in a foreign country and has to pay social security in that country (especially if he is independent and has to pay the entire portion), the United States has reduced the burden of entering into a totalization agreement with countries, so that the person would not have to pay the same tax in the United States. 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. A list of countries with which the United States currently has totalization agreements and copies of these agreements can be obtained from the United States.

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