TN 17 (06-97)
RS 02001.145 How a Certificate of Coverage Is Issued Under the U.S. - German Agreement
Following is a description of the certificate of coverage process.
1. U.S. Certificates
SSA completes the certificate of coverage form and mails two copies to the U.S. employer (or the employer's representative) that requested it. (Only one copy is mailed to a self-employed person.)
The U.S. employer gives one copy of the certificate to the employee for his or her records and sends the other copy to its office in Germany where the employee will be working.
The employer in Germany or the self-employed person presents the certificate to the German tax authorities, if requested to do so, to verify the worker's exemption from German Social Security tax.
2. German Certificates
The German agency sends a copy to the person requesting the certificate.
If the person is employed, the employer in the U.S. retains the certificate and presents it to the IRS upon request.
If the person is self-employed, the worker attaches a photocopy of the certificate to the schedule SE that is filed with the income tax return each year. When preparing the schedule SE to determine the amount of the SECA tax, the worker indicates that the earnings are exempt under the agreement as evidenced by the attached certificate.
B. Procedure - Where to Write
Advise the employer or self-employed person to request a certificate of coverage by writing to:
1. U.S. CertificatesSocial Security Administration
Office of International Policy
P.O. Box 17741
Baltimore, Maryland 21235-7741
2. German CertificatesLandesversicherungstanstalt Freie und Hansestadt-Hamburg
Pension Insurance of Salaried Employees:Bundesversicherungsanstalt Fuer Angestellte
Miner's Pension Insurance:Bundesknappschaft Hauptverwaltung Bochum
Special Institute of the Wage Earners' Pension Insurance for Railroad Workers:Bahnversicherungsanstalt
Berziksleitung Wuppertal (VT)
Special Institute of the Wage Earners' Pension Insurance (Navigational Employee or Sea Pilot):Seekasse
Postfach 11 04 89
C. Procedure - Required Information
Advise the person to provide the following information when writing to obtain a certificate of coverage:
Full name of worker
Social Security number (U.S. number for U.S. certificate and German number for German certificate)
Country of citizenship
Date and place of birth
Country of permanent residence
Name and address of employer in both countries (if self-employed, address of trade or business in both countries)
Nature of trade or business, if self-employed
Date and place of hire by employer transferring the employee, if employed
Beginning date and ending date (if known) of employment or self-employment in the other country
Statement indicating whether the employee will remain an employee of the U.S. company while working in Germany or will become an employee of a German company
NOTE: If the worker will be an employee of a German affiliate of an American employer, the request must indicate whether the American employer has entered into an agreement with the Internal Revenue Service under section 3121(l) of the Internal Revenue Code and, if yes, the effective date of such an agreement.