USA ready to discuss social security tax burden of Indians working in America

USA address long-standing concern of social security tax burden of Indians working in America.

According to reports the US has finally accepted India’s proposal to discuss the complicated social security tax issue, which is expected to be the first step in reaching a ‘totalisation agreement’ that could permit Indian professionals working in America to recover their social security deposits after their working visa expire.

Indian expatriates in the US forfeit approximately $1 billion annually as social security tax.

As per the reports, it is for the first time in almost a decade that the US has acknowledged that social security tax is a bilateral issue.

“Last week, commerce secretary Wilbur Ross told commerce minister Piyush Goyal that the issue of social security tax could be discussed. This signifies India and USA are increasingly having stronger ties. It is certainly an extremely important development that India was trying bring on the table for several years without much success,” one of the officials mentioned above, who works in the ministry of external affairs (MEA) said, as reported by Hindustan Times.

Indian workers, particularly IT professionals, contribute big social security returns in the US social security scheme while they work in America, but most of them come back home before they are eligible to withdraw money from their social security contributions, leave their savings behind. A Totalisation Agreement between the two countries would save them from this financial loss, the report said.

Earlier addressing a joint press conference with the US president at Hyderabad House in New Delhi on February 25, PM Modi had said, “I have requested President Trump that the contribution of our professionals, in terms of social security, should be discussed further within the framework of a totalization agreement. This will be of mutual interest to both of us.”