also called social security agreement · bilateral social security agreement
A treaty between two countries that stops you paying social security contributions in both and coordinates your benefit credits.
A totalization agreement is a treaty that stops two countries both charging you social security on the same income, and it also stitches your benefit credits together across them. It is the social-security cousin of a double taxation treaty, which deals with income tax; people mix the two up because both stop double charges. Without one, you can be paying into two countries' systems on one paycheck; with one, you generally pay into just a single system.
You are sent to work in Germany but stay employed by your US company. Without this agreement both countries would take social security from your wages, but because one exists, you keep paying into just one system and your contributions still count toward your pension.
Without one you can owe social contributions in two countries on the same income; with one you generally pay in just one.
The difference is the whole point, so here is each one in a line.
Double taxation is being charged by two countries on the same income, and a double taxation treaty is the agreement that divides the taxing rights so you get relief, which a certificate of tax residency is the proof you claim it with.
A totalization agreement does the parallel job for social security so you do not pay contributions in both countries, and a certificate of coverage proves which country you are paying into.
Certificate of tax residency · Double taxation · Double taxation treaty
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