Social Security Agreement France China
This agreement is not yet in force, as the ratification process must be completed. It may take several months to enter into force. The text has not yet been published and all information can be provided by the body « Centre des Liaisons Européennes et internationales de sécurité sociale (CLEISS) », a French public administrative body financed mainly by the French social security systems and as a liaison body between French and foreign social security bodies for the application of European and bilateral legislation and the Multilateral Agreement on the social security. In situations where there is no aggregation agreement between the two countries, additional costs may be borne by the employer. These additional costs are as follows: any agreement (with the exception of the agreement concluded with Italy) provides for a derogation from the territoriality rule, which aims to minimise disruptions in the coverage of the careers of workers whose employers they temporarily send abroad. Under this derogation for « exempted workers », a person temporarily transferred to another country for the same employer remains covered only by the country from which he or she was posted. For example, a U.S. citizen or resident who is temporarily transferred by a U.S. employer to work in a contracting country remains covered by the U.S.
program and is exempt from coverage under the host country system. The worker and employer only contribute to the U.S. program. The latter point concerns multinationals which, due to the unique consequences of an international operation, compensate for the financial profits or losses of the expatriate due to the unique consequences of an international operation, which entails an additional financial burden if they fulfil the worker`s social security obligation as part of their expatriate policy. In addition, the tax legislation of the host country may consider such a payment by the employer as a taxable compensation for the transferee, which further increases the overall financial burden of the company. In addition, spouses and children of the above-mentioned Chinese nationals who reside in Japan may, under certain conditions, apply for an exemption from social security contributions during their stay in Japan. The agreement, once in force, is expected to help facilitate cross-border trade relations and personnel trafficking between the two countries. Although the agreements with Belgium, France, Germany, Italy and Japan do not use the residence rule as the primary determinant of coverage of self-employment, each of them contains a provision guaranteeing that workers are insured and taxed in only one country. For more information on these agreements, click here on our website or by writing to the Social Security Administration (SSA) in the « Conclusion » section below. Although social security agreements vary in terms of coverage, their intent is similar depending on the terms agreed by the two signatories. The main objective of such an agreement is to eliminate the double social security contributions incurred when a worker from one country works in another country and is required to pay social security contributions to both countries whose income is the same.