Although the social security agreements differ according to the conditions agreed by the two signatory states, their intention is similar. The main objective of such an agreement is to abolish the double social security contributions that apply when a worker from one country works in another country and has to pay social security contributions for the two countries with the same incomes. In order for a worker to be posted to another Member State, an A1 certificate (formerly E-101 certified) would have to be applied for in the Member State where social security is renewed. In the host Member State, the A1 waives social security contributions. In addition, your employer must indicate whether you remain an employee of the U.S. company during your activity in Portugal or if you are employed by the U.S. company`s subsidiary in Portugal. If you become a related company, your employer must indicate whether the U.S. company has entered into an agreement with the Internal Revenue Service pursuant to Section 3121 (l) of the Internal Revenue Code to pay U.S. Social Security taxes for U.S. citizens and residents employed by the subsidiary and, if so, the effective date of the agreement. and, with regard to Portugal, the Minister or any other authority responsible for social security schemes in all or part of Portugal`s territory; Under these agreements, Australia equates social security periods/stays in these countries with periods of Australian residence in order to meet minimum qualification periods for Australian pensions.
In other countries, periods of Australian working life are generally counted as social security periods to meet their minimum payment periods. Typically, each country pays a partial pension to a person who has lived in both countries. If you do not agree with the decision on your entitlement to benefits under the agreement, contact a U.S. or Portuguese social security office. The people there can tell you what you need to do to appeal the decision. Select the country`s name from the list below for information on how to avoid U.S. and foreign social security double taxation and how to claim benefits under the agreement with a particular country. When several states are involved, the EC`s social security provisions determine the country that must pay the benefits and the applicable national legislation. The basic principles are simple: applications should include the name and address of the employer in the United States and the other country, the full name, place and date of birth of the worker, citizenship, U.S. and foreign social security numbers, place and date of employment, and the start and end date of transfer abroad. (If the employee works for a foreign subsidiary of the U.S. company, the application should also indicate whether U.S.
Social Security Insurance has been agreed upon for employees of the related company pursuant to Section 3121 (l) of the internal income code.) Self-employed workers should indicate their country of residence and the nature of their self-employment.