Does India Have Totalization Agreement With Us

Red Fish Kitchen > Does India Have Totalization Agreement With Us
  • Date: April 9, 2021
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“Once signed, the agreement would benefit workers in both countries and ensure equal treatment,” Singla said in a statement. Indian factories pay taxes on their income in the United States. Either they can receive all social security benefits after eight years, or their work visas are extended beyond 10 years so they are not affected and receive all benefits on an equal footing with U.S. citizens, he added. A totalization agreement, commonly known as the Social Security Agreement, exempts foreign workers with non-permanent visas from social security contributions in the country of employment, where they are not entitled to reimbursement. A totalization agreement is a bilateral agreement between two countries that incorporates the social security laws of two countries. The objective of the totalization agreements is to abolish the dual social security tax for Indian citizens and residents posted to foreign countries such as the United States and, second, so that workers who share their careers between India and a foreign country can continue to be covered by the Indian social security system. A second person working at the Commerce Department said Goyal raised the issue during a tele-conversation with Ross on July 16, and that the U.S. Commerce Secretary`s reaction was positive. Ross proposed to arrange a meeting between the U.S. Social Security Administrator and Indian officials to discuss the issue and find a possible solution, he said.

This is a long-term request from India for a speedy conclusion of the totalization agreement or the social security agreement with the United States. It aims to protect the interests of professionals of Indian descent, who contribute more than $1 billion annually to U.S. Social Security. Under the pact, professionals in both countries would be exempt from social security contributions if they went to work in the other country for a short period of time. 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. “I told President (US) Trump that the contribution of our Social Security experts should be discussed further as part of a totalization agreement. It will be of mutual interest to both of us,” Narendra Modi told reporters in New Delhi with Trump. As a result of globalization, Washington and New Delhi have established a strategic partnership since 2004 based on shared values and numerous economic, security and global initiatives. The overall value of bilateral trade has tripled since 2004 and continues to grow, while significant national investment is also growing and flourishing in the economy, trade and agriculture, energy and climate change, education and development, science, technology and innovation. “India is in favour of discussions due to the introduction of new social security systems in the country in recent years and the expansion of coverage, which has led to greater compatibility of the two countries` systems,” a development official told BusinessLine. “India and the United States have totalization agreements with several countries, some of which are common, which is why a totalization agreement between the United States and India is more dependent on political will, which seems positive on both sides,” said a third official working at the Labor Department.