Totalization Agreement Us And India

Under this derogation for “exempted workers”, a person temporarily transferred to another country for the same employer remains covered only by the country from which he or she was posted. For example, a U.S. citizen or resident who is temporarily transferred by a U.S. employer to work in a contracting country remains covered by the U.S. program and is exempt from coverage under the host country system. The worker and employer only contribute to the U.S. program. Under certain conditions, a worker may be exempted from coverage in a contracting country, even if he or she has not been transferred there directly from the United States. For example, if a U.S. company sends an employee from its New York office to work for 4 years in its Hong Kong office and then transferred them to their London office for another four years, the employee may be exempt from UK social security coverage in the US and UK.

It is an agreement. The exemption rule applies in such cases, provided that the worker was originally posted from the United States and remained under U.S. social security coverage for the entire period prior to the posting to the contract country. The United States has entered into so-called aggregation agreements with several countries, in order to avoid double taxation of income with respect to taxes on social security. . . .