TN 13 (09-93)
RS 02001.780 Coverage Rule for Self Employment - U.S. Luxembourg Agreement
A person whose earnings from self-employment would otherwise be subject to compulsory coverage in both the U.S. and Luxembourg is subject only to the laws of the country of which he/she is a resident.
A self-employed U.S. citizen, who is a resident of Luxembourg and subject to its coverage laws, is exempt from paying SECA tax. However, he/she must still file a U.S. tax return every year. When preparing the schedule SE which is normally used 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 Luxembourg (see RS 02001.795) as proof of the exemption.