U.S., Czech Republic enter into supp. Totalization agreement

The Acting Commissioner of Social Security has given notice that a supplementary agreement coordinating the United States and the Czech Republic Social Security programs entered into force on May 1, 2016. The original agreement with the Czech Republic was signed on September 7, 2007. The intent of the original agreement was that workers covered exclusively under U.S. laws while working in the Czech Republic would be exempt from Czech health insurance contributions. However, a change in Czech law after the signing of the original 2007 agreement caused these workers to be liable for Czech health insurance taxes. This result was inconsistent with the purpose of the totalization agreement to eliminate duplicate taxation as permitted by 42 U.S.C. 433 and 26 U.S.C. 3101(c).

The supplementary agreement exempts a worker subject exclusively to U.S. laws from contributing to the Czech health insurance system. The supplementary agreement achieves this result by placing the new Czech health insurance law, the Act on Public Health, within the scope of the 2007 U.S.-Czech Agreement.Individuals who wish to obtain copies of the agreement or who would like more information about its provisions may write to the Social Security Administration, Office of International Programs, P.O. Box 17741, Baltimore, MD 21235-7741 or visit the Social Security website at www.socialsecurity.gov/international (81 Fed. Reg. 35434, June 2, 2016).

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