Totalization Agreements are agreements designed to help taxpayers avoid paying too much in taxes. At this time, the United States has Totalization Agreements with the following countries: Australia, Austria, Belgium, Canada, Czech Republic, Chile, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovak Republic, South Korea, Spain, Sweden, Switzerland and the United Kingdom.
These agreements prevent dual Social Security taxation, which occurs when a taxpayer from one country spends time working in another country and must pay Social Security taxes to both countries on the same earnings. In addition, these agreements help to fill in gaps in benefit protection for individuals who have split their careers between the United States and a foreign country. The agreements assign coverage to just one country and exempt the taxpayer from the payment of Social Security taxes in the other country.