For Brazilian and U.S. nationals who have worked at both sites, this agreement will help meet the qualification requirements for certain pension, disability and survival benefits (total benefits). In addition, the agreement deals with a possible double taxation of social security for cross-border employment scenarios. It`s good to know. Well, thank you for helping us better understand the important features of this historic agreement between the two countries. SSTA covers old age, disability and survival benefits from social security schemes in both countries. It should be noted that the agreement does not cover participation in the National Severance Compensation Fund (commonly known as FGTS). The FGTS is financed by compulsory employer contributions equal to 8% of an employee`s salary. On the contrary, for social security reasons, the administrator is considered an „individual taxpayer“ and his contributions to Brazilian social security must be withheld each month by the local source of his local allowance. Social contribution rates range from 8% to 11%. The tax base is the salary earned.

Recently, it was learned that the Comprehensive Social Security Agreement (SSTA) between the United States and Brazil will finally come into force on October 1, 2018. It is estimated that approximately 1.3 million Brazilians and 35,000 Americans will benefit from this agreement. We asked our international social security expert, Bob Rothery, in San Diego to comment on the details of the agreement. Welcome, Bob. First of all, Bob, remember, what is a totalization agreement? John Seery: Is there anything else in this agreement? Yes, yes. Well, without going into detail, yes, this agreement has a special rule for people who have worked temporarily in a third country. For the self-employed, the agreement provides for a tax in the country of residence. The provisions of Brazil`s agreement are similar to those of most other NTSS to which the United States belongs7 As a general rule, a worker is covered by the social security system of the country in which he operates. However, when a worker normally employed in one of the contracting states of an employer established in that country is seconded to the other country for a period of five years or less, he is covered by the social security system of his country of origin. The employer of such a worker should receive a certificate of coverage from his country of origin stating that he has the right to remain covered by the system of his country of origin. Although employees already employed in the United States or Brazil are not entitled to a retroactive coverage certificate, their five-year intervention period is not considered to be in between beginnings until after the agreement with Brazil enters into force.

Time is running out, but I would just like to go back to a point that was made at the beginning of our discussion.