U.s. Japan Social Security Agreement
All of these agreements are based on the concept of shared responsibility. Responsibility-sharing agreements are reciprocal. Under each agreement, partner countries make concessions to their social security qualification rules so that those covered by the agreement have access to payments that they may not be eligible for. The responsibility for social security is thus distributed among the countries in which a person has lived during his or her working years and where the person is able to obtain potential rights. In general, it is possible to access a pension from one country in the second country, although the paying country retains some discretion with regard to the exchange and delivery mechanisms used. The United States has agreements with several nations, the so-called totalization conventions, in order to avoid double taxation of income in relation to social contributions. These agreements must be taken into account in determining whether a foreigner is subject to the U.S. Social Security Tax/Medicare or whether a U.S. citizen or resident alien is subject to the social security taxes of a foreign country. A list of countries with which the United States currently has totalization agreements and copies of these agreements can be accessed under U.S. international social security agreements.
This document discusses the strengths of the agreement and how it can help you work and apply for benefits. If you have any questions about international social security agreements, please contact the Office of International Social Security Programs at 410-965-3322 or 410-965-7306. However, do not call these numbers if you want to inquire about a right to an individual benefit. The Social Security Agreement between the United States and Japan distinguishes between individuals, nationals employed by one company to work in the territory of the other state (for example. B a U.S. company transfers a worker to Japan), nationals employed by its government (. B for example, a Japanese citizen working at the U.S. Embassy), self-employed persons and persons hired in their country of employment by a company established in one of the contracting states (for example, a U.S. company hires a Japanese national to work in Japan.B). Under the U.S. Social Security Agreement. S.-Japan, a worker is exempt from paying a double tax on the same income if the duration of employment in the other country does not exceed five years.
It should also be noted that the agreement allows for an extension beyond this five-year period, but the competent authorities will have to be asked for such an extension. An agreement that will enter into force on October 1, 2005 between the United States and Japan improves the protection of social security for people who work or have worked in both countries. It helps many people who, in the absence of the agreement, would not be entitled to monthly pension, disability or survival benefits under the social security system of one or both countries. It also helps people who would otherwise have to pay social security contributions to the two countries with the same incomes. The table below outlines the different types of social security benefits to be paid under the U.S. and Japanese social security plans and briefly outlines the eligibility requirements normally applicable to each type of benefit. If you do not meet the normal conditions for these benefits, the agreement can help you qualify (see “How Benefits Can Be Paid”). Any foreigner wishing to apply for an exemption from U.S. Social Security and Medicare taxes on the basis of a totalization agreement must obtain an insurance certificate from the social security authority of his country of origin and present such proof of insurance to his employer in the United States, in accordance with procedures 80-56, 84-54 and Ruling 92-9. An alternative procedure is provided in these revenue procedures for a foreigner who is unable to obtain a certificate of coverage from his country of origin.
This section deals with Japan`s labour laws and regulations.