Workers who are exempt from U.S. or foreign social security contributions under an agreement must document their exemption by obtaining a country coverage certificate that continues to cover it. For example, an American worker temporarily posted to the UK would need a SSA-issued coverage certificate to prove his exemption from UK social security contributions. Conversely, a UK-based employee working temporarily in the Us would need a certificate from the British authorities to prove the exemption from the US Social Security Tax. Under the terms of the agreement, a national of the United States or Italy, who would otherwise be covered by both countries, normally remains covered only by the country of which he is a national and, in the other, without land. However, Italian nationals and dual nationals (U.S. and Italian nationals) who work in a job or self-employment under both schemes must choose to be exempt from coverage and taxation under one scheme and to pay social insurance taxes to the other. This choice must be made within three months of the start of work. If you are an Italian national, you can then change your report choice. However, you can only change your choice: b. Any endorsement that comes into force in accordance with this paragraph is deemed to be an integral part of this agreement for the purposes of this article. Double tax debt may also affect U.S.
citizens and residents working for foreign subsidiaries of U.S. companies. This is likely to be the case when a U.S. company has followed the common practice of entering into an agreement with the Treasury, pursuant to Section 3121 (l) of the Internal Income Code, to provide social security to U.S. citizens and residents employed by the subsidiary. In addition, U.S. citizens and residents who are independent outside the United States are often subject to double social security taxation, as they are covered by the U.S. program, even if they do not have a U.S. business. As a precautionary measure, it should be noted that the derogation is relatively rare and is invoked only in mandatory cases. There are no plans to give workers or employers the freedom to regularly choose coverage that contradicts normal contractual rules.
Although the agreement between the United States and Italy allows the Social Security Administration to count your Italian credits to help you qualify for pension, disability or survival benefits in the United States, the agreement does not cover Medicare benefits. Therefore, we cannot count your credits in Italy to justify the right to free Medicare hospital insurance. Expats who work for a foreign employer are generally exempt from Social Security and Medicare from their salary. Instead, they contribute through the private employer of the country of residence scheme (i.e. the British National Insurance or the French Security Social or Singapore CPF). However, there is a difference in the way in which credits granted in Britain by France (countries that have entered into a totalisation agreement) and credits acquired in Singapore (no totalisation agreement) can in future be granted for social benefits in the United States. Normally, people who are not U.S. citizens can receive U.S. Social Security benefits while they are outside the U.S., only if they meet certain requirements. However, according to the agreement, you can receive benefits as long as you reside in Italy, regardless of your nationality.
If you are not a U.S. citizen and you live in another country, you may not be able to receive benefits. Restrictions on U.S. benefits are published in The publication Social Security – Your Payments While You Are Outside The United States (Publication No.