The guarantee certificate you receive from one country indicates the effective date of your exemption from payment of social security contributions in the other country. In general, this is the date you started working in the other country, but not before the agreement came into force. The table below outlines the different types of social security benefits to be paid under the U.S. and Japanese social security plans and briefly outlines the eligibility requirements normally applicable to each type of benefit. If you do not meet the normal conditions for these benefits, the agreement can help you qualify (see “How Benefits Can Be Paid”). Normally, people who are not U.S. citizens can receive U.S. Social Security benefits if they are outside the U.S., if they meet certain requirements. Under the agreement, you can receive benefits if you are a U.S. citizen or a Japanese citizen, a refugee, stateless person, or anyone entitled to benefits for dependent or surviving persons based on the social security record of one of these people, as long as you reside in Japan. If you are not an American or a Japanese citizen and you live in another country, you cannot receive benefits. Restrictions on U.S.
services are explained in Your Payment While You Are Outside The United States. Self-employed workers who, in the absence of the agreement, would have to pay social security contributions to both countries are subject to special rules (see table below). On October 1, 2005, Japan was the last country to be included on the list of countries with which the United States of America has social security agreements. To date, the United States has concluded 21 of these agreements, the oldest of which is the Treaty with Italy – it came into force in 1978. In the meantime, the United States has concluded social security agreements with Germany, Switzerland, Belgium, Norway, Canada, the United Kingdom, Sweden, Spain, France, Portugal, the Netherlands, Austria, Finland, Ireland, Luxembourg, Greece, South Korea, Chile, Australia and Japan. An agreement would also fill gaps in benefit protection for U.S. workers who have worked in both countries, but not long enough in one or both countries to qualify for benefits. Elimination of the double taxation on social security that occurs when a worker from one country works in another country and has to pay social security taxes to both countries with the same income. As a result of existing totalization agreements, U.S. workers and employers are currently saving about $800 million a year in foreign taxes that they do not have to pay. These international social security agreements are called totalization agreements and have two main objectives: if you have social security credits in both the United States and Japan, you may be entitled to benefits from one or both countries.
If you meet all the essential requirements under a country`s system, you will benefit regularly from that country. If you don`t meet the basic requirements, the agreement can help you qualify for a performance, as explained below. In Japan, both chambers of the Japanese parliament must vote in favour of the agreement after the agreement is signed.