7 Social security agreement between the United States of America and the Federal Republic of Brazil. The social security totalization agreements between the United States and Brazil („agreement with Brazil“) and between the United States and Uruguay („Uruguay Agreement“) are expected to enter into force next fall. The agreement with Brazil will enter into force on 1 October 20181, while the Uruguay Agreement will enter into force a month later on 1 November 20182. These SSTAs should help facilitate the free cross-border movement of workers between the United States and Brazil, as well as between the United States and Uruguay. Time is running out, but I would just like to go 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 the possibility of paying only one social security tax instead of two. That`s right, John. Many totalization agreements allow for extensions beyond the five-year period. But the agreement between the United States and Brazil contains a specific provision stipulating that an extension is allowed only if the person has not been in the host country for at least six months. Well, that`s true. There are certain transitional rules that people have to follow when a new agreement comes into force. But the first thing to understand is that the agreement is not retroactive. A person who has paid social security tax in both countries is not entitled to the tax tax refund for — before the agreement comes into effect.
Well, Bob, many employers are trying to understand the impact of the agreement on their American workers who are already in Brazil and vice versa. What else can you tell us? It`s good to know. Well, thank you for helping us better understand the important features of this historic agreement between the two countries. We asked our international social security expert, Bob Rothery, in San Diego to comment on the details of the agreement. Welcome, Bob. First of all, Bob, remember, what is a totalization agreement? It should not be forgotten that totalisation agreements are international treaties aimed at guaranteeing the rights of social security to policyholders and their nationals of the candidate countries. These agreements allow the date of contributions of workers to the social security schemes of the two countries for the acquisition of social benefits, such as the old age or disability pension, to be accounted for. B the increase in pension in the event of death, as well as the prevention of double taxation in the event of temporary reassignment. Tax treaties and totalization agreements have been saved for Brazilian and U.S. nationals who have worked at both sites, this agreement will help meet the qualification requirements for certain pension, disability and survival benefits (total benefits).