Argentina, Luxembourg sign social security agreement
Argentina and Luxembourg have signed a social security totalisation agreement, eliminating double taxation by allowing applicable employees to fall under only one country’s social security law.
Signed in April, the law has a retroactive effect, from December 1, 2014.
Under the agreement, individuals may remain within their home country tax scheme for up to 24 months when working between the two countries, and can aggregate periods of insurance in both countries when determining eligibility for benefits.
The benefits covered include disability, old age and maternity benefits in both countries, as well as housing benefits in Argentina. Employers in both countries will be able to obtain certificates of coverage for employees sent on assignment between the two countries.
The agreement, in line with Organisation for Economic Cooperation and Development (OECD) guidelines, is still to be ratified by both countries’ legislatures.
