TN 11 (09-92)

RS 02001.730 Coverage Rule For Self-Employment - U.S. Finnish Agreement

A. POLICY - GENERAL

A person whose earnings from self-employment would otherwise be subject to compulsory coverage in both the United States and Finland is subject only to the laws of the country of which he or she is a resident.

B. POLICY - EXCEPTION

If a person who would otherwise be covered under the laws of both countries is engaged in work activity that is considered employment by one country and self-employment by the other country, coverage is determined as follows:

IF THE WORKER IS A
RESIDENT OF
THEN COVERAGE IS
Country which considers the work to be self-employment Subject to laws of country of residence
Country which considers the work to be employment Determined following rules for employment (see RS 02001.710 -
RS 02001.725)

C. PROCESS

A self-employed U.S. citizen who is subject only to Finnish law under the agreement and is exempt from paying SECA tax must still file a U.S. tax return every year. When preparing the schedule SE to determine the amount of the SECA tax, the worker indicates the earnings are exempt under the agreement and attaches a photocopy of the certificate of coverage issued by Finland (see RS 02001.745) as proof of the exemption.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302001730
RS 02001.730 - Coverage Rule For Self-Employment - U.S. Finnish Agreement - 02/29/1996
Batch run: 01/27/2009
Rev:02/29/1996