Workers who are exempt from U.S. or foreign social security contributions under an agreement must document their exemption by obtaining a country coverage certificate that continues to cover it. For example, an American worker temporarily posted to the UK would need a SSA-issued coverage certificate to prove his exemption from UK social security contributions. Conversely, a UK-based employee working temporarily in the Us would need a certificate from the British authorities to prove the exemption from the US Social Security Tax. Anyone who wants more information about the U.S. Social Security totalization program – including details of some existing agreements – should write: this is probably the most important paragraph of the treaty and probably the most forgotten when discussed. The paragraph above means that, with a few exceptions, it is in fact as if the whole contract did not exist for dual citizens. The exceptions to this rule are what appears in paragraph 4, which contains certain points such as social security, which we discussed above, charitable contributions, grants and others. While it can get rid of many benefits for dual citizens, we may still be able to help you use the contract to use some of the licensed items. 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. Since the late 1970s, the United States has established a network of bilateral social security agreements that coordinate the United States.