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 |
|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 - |
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.