On June 30, 2015, the White House announced that the United States and Brazil have signed a Social Security Totalization Agreement. The agreement, which has not yet been made public, will undergo review by the legislatures in the United States and Brazil. The agreement will eliminate dual social security contributions, which occur when a worker from one country works in another country.
On June 30, 2015, the White House announced that the United States and Brazil have signed a Social Security Totalization Agreement (the “agreement”).1 The agreement, which has not yet been made public, will undergo review by the legislatures in the United States and Brazil. Once approved, Instruments of Approval will be exchanged. The agreement will take effect after completion of the exchange.
The agreement will eliminate dual social security contributions, which occur when a worker from one country works in another country. It will also close the gaps in benefit protections for workers who divide their careers between the United States and Brazil. The United States estimates that the agreement will save U.S. and Brazilian companies more than $900 million over the first six years.
1 For a copy of the signing announcement, please see: https://www.whitehouse.gov/the-press-office/2015/06/30/fact-sheet-united-states-and-brazil-mature-and-multi-faceted-partnership.
The following information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.