TN 20 (01-12)
RS 02001.271 Self-Employment Rule under the Agreement with Belgium
A. Self-Employment Rule
Under the agreement, self-employed individuals are generally subject only to the social security taxation and coverage laws of the country where they perform their work. An individual who is self-employed in both countries will be subject to coverage only by the country in which he or she is a resident. In such cases, the country in which the self-employed person has established the primary home is the country of residence (For information on evidence of residence, see GN 01702.230). However, the agreement provides for an exception if a person transfers self-employment activity from one country to the other for five years or less. In that case, self-employment remains subject to the social security laws of the country where the person transfers the activity from, and is exempt from social security coverage and taxation requirements of the other country.
NOTE: A self-employed U.S. national, who is subject only to Belgian social security law under the agreement and is exempt from paying the U.S. social security self-employment tax, must still file a U.S. tax return every year. When preparing the income tax return, the worker should show that the earnings are exempt under the agreement and attach a photocopy of the certificate of coverage issued by the Belgian authorities as proof of the exemption.
B. Related reference
RS 02001.285 Certificates of Coverage under the Agreement with Belgium