Us Switzerland Totalization Agreement

A new agreement between the United States and Switzerland, which enters into force on 1 August 2014, improves social protection for people who work or have worked in both countries. The agreement helps many people who would not otherwise be entitled to a monthly pension, disability or survivors` benefits under the social security system of one or both countries. The agreement also helps people who would otherwise have to pay social security taxes to both countries with the same income. Aggregation agreements are among the least used instruments against double taxation available to expatriates. You are probably already familiar with the exclusion of income earned abroad and the foreign tax credit to eliminate double taxation. But if you haven`t kept an eye on the U.S.-Switzerland tabling agreement, you could be taxed twice. Expats living in Switzerland will receive the facts you need about the U.S.-Switzerland tablation agreement…