Individuals assigned between Brazil or USA may remain within their home country social security scheme, reducing costs.

According to numbers released by the Brazilian Ministry of Finance, there are over 1.3 million Brazilian living in the united states and 35 thousand Americans residing in Brazil, who are now able to benefit from this agreement.

This agreement aims to close the gaps in benefit protections for workers who divide their careers between the United States and Brazil  and Eliminate double social security contributions on the same earnings

What is a Social Security Totalisation Agreement?

Totalisation agreements are international agreements in the area of social security and are similar to a tax treaty.  Eliminates double taxation that may occur where earnings are subject to the social security taxes of multiple jurisdictions.

The agreement

On October 1st, 2018 the agreement between Brazil and the United States of America becomes active and joins the network of other agreements that Brazil has with Germany, Belgium, Cape Verde, Canada, Chile, South Korea, Spain, France, Greece, Italy, Japan, Luxembourg, Portugal, and Quebec.

In the past US and Brazilian employers who had employees working in other country had to contribute to both country's social security systems on the same earnings. After the agreement mobility costs can be reduced as contributions will only be required for one of the countries on the same earnings.

The accord will make the movement of employees and employers between the signatory countries easier and provide benefits qualification for workers who have divided their careers between the United States and another country.

Companies with international operations will also be favored, reducing their tax burden with the personnel stationed abroad. They can request the Certificate of Displacement for their employees which guarantees the effects determined in the international agreement ratified between Brazil and the United States.

In addition, there is the possibility to require retirement by age, retirement by invalidity and pension by death. The deal allows for the time counting, however, each country will pay the benefits in its own currency.

The Americans transferred to Brazil must apply for the Certificate of Displacement in the United States and Brazilians transferred to the USA must apply in Brazil. It is important to remember that the request for the Certificate must be made before the commencement of the trip.