A person whose earnings from self-employment would otherwise be subject to compulsory coverage in both the U.S. and Luxembourg is subject only to the laws of the country of which that person is a resident.

A self-employed U.S. citizen, who is a resident of Luxembourg and subject to its coverage laws, is exempt from paying Self-Employment Contribution Act (SECA) tax; however, the individual must still file a U.S. tax return every year. When preparing the Schedule SE (Form 1040), which is normally used to determine the amount of the SECA tax, the worker indicates that the earnings are exempt under the agreement and attaches a photocopy of the certificate of coverage issued by Luxembourg as proof of the exemption. See RS 02001.795 for more information on certificates of coverage - U.S. - Luxembourg Agreement.