A self-employed U.S. citizen who is subject only to Japanese law under the Agreement
and is exempt from paying Social Security Self-Employment (SECA) tax must still file
a U.S. tax return every year.
To show that the self-employment earnings are exempt from U.S. Social Security self-employment
tax, the person must do the following:
• Indicate on Schedule SE that the earnings are exempt under the Agreement; and
• Request a certificate of coverage from the Japanese authorities; and
• Attach a photocopy of the certificate of coverage issued by Japan to the U.S. tax
return every year as proof of the exemption.