United States – Social Security Agreement Signed with Brazil

United States – Social Security Agreement Signed

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.

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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.

WHY THIS MATTERS

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.

FOOTNOTE

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.

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