The guarantee certificate you receive from one country indicates the effective date of your exemption from paying social security contributions in the other country. In general, this is the date you started working in the other country, but not before the agreement came into force. This agreement may be amended in the future by complementary agreements which, as soon as they come into force, will be considered an integral part of this agreement. These endorsements can be entered into retroactively if they specify. This report discusses aspects of the recently ratified social security agreement between the Netherlands and the People`s Republic of China (« China »), which will come into force on 1 September 2017. The United States has agreements with several nations, the so-called totalization conventions, in order to avoid double taxation of income in relation to social contributions. These agreements must be taken into account in determining whether a foreigner is subject to the U.S. Social Security Tax/Medicare or whether a U.S. citizen or resident alien is subject to the social security taxes of a foreign country. Note As shown in the table, an American worker employed in the Netherlands can only be covered by U.S. Social Security if he or she works for a U.S. employer. A U.S.
employer includes a company organized under U.S. or state law, a partnership if at least two-thirds of the partners are based in the United States, a U.S.-based person or a fiduciary company if all agents are established in the United States. It is also a foreign subsidiary of a U.S. employer when the U.S. employer entered into an agreement with the Internal Revenue Service (IRS), pursuant to Section 3121 (l) of the Internal Revenue Code, to pay Social Security taxes for U.S. citizens and residents employed by the subsidiary. A separate agreement, called a totalization agreement, helps American emigrants to the Netherlands not to pay payroll taxes to both the US and Dutch governments. Contributions from expatriates that have been made in the Netherlands can be credited to both systems. The country they pay depends on the length of their life in the Netherlands. Normally, people who are not U.S.
citizens can receive U.S. Social Security benefits when they are outside the U.S., only if they meet certain requirements. However, according to the agreement, you can receive benefits as long as you reside in the Netherlands, regardless of your nationality. If you are not a Dutch citizen of the United States and you live in another country, you cannot receive benefits.