The United States and Norway established a Totalization Agreement in 1984 to address concerns about social security coverage and taxation for individuals who have worked in both countries. This agreement ensures that individuals who have paid social security taxes in both countries can have their benefits calculated and distributed fairly.
The Totalization Agreement between the United States and Norway has been in effect since July 1, 1984. It applies to individuals who have worked in both countries and have paid into the social security systems of both countries. This agreement aims to eliminate the double taxation of individuals who are subject to social security legislation in both countries.
Under the terms of the Totalization Agreement, individuals who have worked in both the United States and Norway can have their social security benefits calculated based on the contributions they have made to each country’s system. This means that if you have worked in both countries, you will be entitled to the benefits you have earned based on the contributions you have made to each system.
In addition to calculating social security benefits, the Totalization Agreement also provides for coordination of the social security systems of the two countries. This means that individuals who are subject to both systems will not be subject to double taxation. Instead, they will pay social security taxes only to the country in which they are currently working.
To take advantage of the Totalization Agreement between the United States and Norway, individuals must meet certain eligibility requirements. These requirements include having paid into both social security systems for a minimum of 12 months, being a citizen or resident of one of the two countries, and meeting other specific requirements depending on the individual’s circumstances.
In conclusion, the Totalization Agreement between the United States and Norway is designed to ensure that individuals who have worked in both countries receive fair treatment with regard to social security benefits and taxation. If you are eligible for this agreement, it is important to understand the terms and requirements in order to receive the benefits you have earned.