Rajan,Chakravarthy and Accociates, Chartered Accountants Chennai

RCA

Social Security Agreements - for eliminating dual social security taxation

Export of Benefit
Social Security benefits such as pension is freely payable by the host country to any location at the choice of the employee without any restriction.

Totalisation
The period of contribution by an employee in the host country will be counted for the purpose of arriving at the “eligibility” for availing benefits under the respective home / host country social security schemes. The benefits would thereafter be provided on a pro-rata basis by each country based on the period of contributions made in the respective country.

Status of India’s SSA with other countries:

The following SSAs have come into force:

Belgium - September 1, 2009. The Employees Provident Fund Organisation (EPFO) has been identified as the liaison agency for the implementation of this agreement in India. The EPFO is in the process of issuing Certificate of Coverage for employees based on joint applications made by both the employee and employer.

Germany - October 1, 2009 . It is understood that the approval process in Germany is not complete and that this agreement would be effective retrospectively once the process is complete.. It is to be noted that the German agreement is a limited agreement - only detachment is provided for, it does not provide for totalisation and export of benefits.

SSAs which are signed (effective date yet to be notified):
       Luxembourg,  Switzerland, France

SSAs under negotiation:

Australia, Canada, Czech Republic, Denmark, Hungary, Netherlands, Norway, Sweden, and USA.