U.S./Denmark Totalization Agreement Signed

By Laurie Marson, CPA, CISA

The U.S. has formally accepted the totalization agreement with Denmark to eliminate duplicate social security coverage and taxation for employed residents of one country working in the other country.  The agreement was signed on June 13, 2007 and is expected to be in effect beginning January 1, 2008. The agreement covers U.S. citizens and permanent residents who work for a U.S. employer in Denmark for up to five years and to remain in the U.S. social security system and not be subject to the Danish Social Pensions Act.  Danish residents employed by a Danish employer and working in the U.S. would be allowed to remain in the Danish social system and not be subject to the U.S. Old Age, Survivors and Disability Insurance program (OASDI) for up to three years.  Exemption from the employment country social security system is obtained through receipt of a certificate of coverage.  U.S. employers may contact the Social Security Administration to obtain such documentation for their U.S. citizen and permanent resident employees working in countries where totalization agreements are in effect at the time the employment commences.  

About Joseph Decosimo and Company, PLLC
Decosimo has significant experience with international business affairs and has committed a team of professionals to work in this area exclusively. From transfer pricing to captive insurance design, Decosimo provides a full range of advisory services for both international companies conducting business in the United States and domestic companies conducting business abroad.

 
The nationally recognized Decosimo CPA firm provides Assurance, Litigation Support and Corporate Finance, as well as international and domestic Tax services to public and private corporations. Decosimo is a leading regional CPA firm with nearly 250 professionals and staff. The firm has offices in Chattanooga, Knoxville, Memphis and Nashville, Tenn.; Atlanta and Dalton, Ga.; Cincinnati, Ohio; and the Cayman Islands.