RS 02001.555 Scope of U.S. Portuguese Agreement
A. POLICY PRINCIPLE — UNITED STATES
For the United States the agreement applies only to RSDI coverage and social security taxes under the RSDI program (i.e., FICA taxes for employment and SECA taxes for self-employment, including the Medicare portion). Thus, if an individual is exempt from U.S. Social Security coverage under this agreement, neither the employee share nor the employer share of the FICA tax, or the SECA tax in the case of a self-employed person, has to be paid.
B. POLICY PRINCIPLE — PORTUGAL
For Portugal, the agreement applies to coverage and taxes under the general social security system and to the special occupational systems, except for the system covering civil servants. This includes not only the taxes to finance the old-age, survivors, and long-term disability benefits, but also the taxes which finance other Portuguese programs such as sickness (temporary disability), maternity, occupational injury and disease, unemployment, and family allowances. Consequently, if an individual is exempt from Portuguese social security coverage as a result of the agreement, no contributions are due under any of these programs.