Under the Agreement, a detached worker remains subject only to the social security laws of the country from which the employer transferred the worker.

However, the worker must meet all of the following conditions:

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  The employer and worker expect the period of employment in the host country to last five years or less. The five-year period begins with the date the employment in the host country begins or October 1, 2005 (the effective date of the Agreement) whichever is later; and

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  The employment relationship existed before the employer transferred the worker from the home country; and

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  If an American employer sends an employee to that employer's affiliate in Japan, there must be an agreement in effect between the American employer and the Internal Revenue Service (IRS) under section 3121(l) of the Internal Revenue Code with respect to the affiliate. In such cases, the employer must still obtain a certificate of coverage to establish the exemption from Japanese social security taxes.

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  Family members who are not Japanese nationals and who accompany an exempted worker to Japan will be subject only to U.S. law and will be exempt from Japanese laws, unless those persons request otherwise.

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  Family members who are Japanese nationals that accompany the exempted worker to Japan will have his or her coverage determined in accordance with Japanese laws.