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. In addition, your employer must indicate whether you remain an employee of the U.S. company while you operate in Japan or if you are an employee of the U.S. company`s subsidiary in Japan. If you become a related company, your employer must indicate whether the U.S.
company has entered into an agreement with the Internal Revenue Service pursuant to Section 3121 (l) of the Internal Revenue Code to pay U.S. Social Security taxes for U.S. citizens and residents employed by the subsidiary and, if so, the effective date of the agreement. 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. If you do not agree with the decision on your entitlement to benefits under the agreement, contact a U.S. or Japanese social security office. The people there can tell you what you need to do to appeal the decision. The United States has agreements with several nations, the so-called totalization conventions, in order to avoid double taxation of income in relation to social contributions. These agreements must be taken into account in determining whether a foreigner is subject to the U.S. Social Security Tax/Medicare or whether a U.S. citizen or resident alien is subject to the social security taxes of a foreign country.
An agreement that will enter into force on October 1, 2005 between the United States and Japan improves the protection of social security for people who work or have worked in both countries. It helps many people who, in the absence of the agreement, would not be entitled to monthly pension, disability or survival benefits under the social security system of one or both countries. It also helps people who would otherwise have to pay social security contributions to the two countries with the same incomes. This document discusses the strengths of the agreement and how it can help you work and apply for benefits. For more information on Japan`s social security program, please contact any branch of a Japanese social security agency or: List of countries with which the United States currently has totalization agreements and copies of these agreements can be obtained from the United States.