TN 9 (11-90)

RS 02001.605 Scope of U.S. Dutch Agreement


For the United States, the agreement applies only to RSDI coverage  and social security taxes under the RSDHI 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 or employer share of the FICA tax nor the SECA tax, in the case of a self-employed person, has to be paid.


For the Netherlands, the agreement applies to social security coverage and taxes which finance all benefit programs under the National Insurance Schemes (NIS) and the Employed Persons Insurance Schemes (EPIS). This includes not only the taxes which finance retirement,survivors and disability benefits, but also the taxes which finance other Dutch programs such as family allowances, health and sickness insurance benefits and unemployment benefits. Consequently, if an individual is exempt from Dutch social security coverage as a result of the agreement, no contributions are due under any of these programs.

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RS 02001.605 - Scope of U.S. Dutch Agreement - 02/28/1996
Batch run: 01/27/2009