The Agreement with Romania became effective on September 1, 2026.

If both the U.S. and Romanian social security systems cover a worker’s employment or self-employment, the Agreement provides that beginning September 1,2026, only one country’s system covers the worker’s employment or self-employment. The Agreement does not affect a worker’s coverage prior to September 1,2026. If a worker had dually covered earnings before September 1, 2026, those earlier earnings were and would continue to be subject to social security contributions in both countries.

For the United States, this Agreement applies to the Old- Age, Survivors, and Disability Insurance (OASDI) program, specifically covering Federal Insurance Contributions Act (FICA) taxes for employment and Self-Employment Contributions Act (SECA) taxes for self-employment.

If a worker is exempt from U.S. Social Security coverage under this Agreement, neither the worker nor the employer is required to pay FICA taxes during the period of exemption. Similarly, a self-employed individual is not required to pay SECA taxes for any period in which the exemption applies

This Agreement does not apply to Medicare.

For Romania, this agreement applies to the laws governing the Old‑Age, Survivors, and Disability Insurance (OASDI) benefits programs of the social security system, as well as to the death grant provided to the family of deceased workers under Romanian national laws.

A worker subject only to U.S. laws under the coverage provisions of this Agreement will be exempt, together with his or her employer, from making contributions for Romanian OASDI and health insurance programs.

The Agreement establishes a general territoriality rule, which states that a worker’s employment or self-employment is typically subject only to the social security laws of the country where the work is performed. Under this rule, if a worker’s employment or self-employment would otherwise be covered by the laws of both countries, coverage is limited to the system of the country in which the work takes place, and the worker is exempt from coverage under the other country’s system. However, there are several exceptions to this rule, designed to ensure that coverage is provided under the system of the country with which the worker has a substantial connection. These exceptions are explained in RS 02002.790 - RS 02002.850.

A detached worker is an employee whose employer in one country sends him or her to work temporarily in another country for the same employer or an affiliate of that employer.

A worker will continue coverage under the social security system of the first country and will be exempt from coverage in the host country provided that the period of the transfer is no longer than five years

Under the Agreement, a detached worker remains subject only to the social security laws of the country from which the employer sent the worker, if the worker meets all the following conditions:

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  The employer and worker expects the period of employment in the host country to last five years or less. The five-year period begins with the date the employment in the host country begins or September 1, 2026 (the effective date of the Agreement), whichever is later.

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  The employment relationship existed before the employer sent the worker from the home country
  

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  If an American employer sends an employee to that employer's affiliate in Romania, there must be an agreement in effect between the American employer and the Internal Revenue Service (IRS) under Section 3121(l) of the Internal Revenue Code with respect to the affiliate. The 3121(l) agreement provides, among other things, for Social Security coverage for U.S. citizens and residents that the affiliate employs. In such cases, the employer must still obtain a certificate of coverage to establish the exemption from Romania social security taxes.
  

  NOTE: 

  The detached worker rule applies even if an employer does not directly send the employee from one country to the other but first assigns him or her to work in a third country.
  

The United States and Romania agreed to an extension beyond the 5-year transfer period subject to the following conditions:

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  The employer or self-employed person must request the extension before the end of the intial 5-year period.

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  The extension will not exceed four years, and

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  Both countries agree to the extension

RS 01901.070 Employment Outside the United States for a Foreign Affiliate or Subsidiary of an American Employer

An employee on a U.S. or Romanian ship, who would otherwise have coverage in both countries, will have coverage only in the country whose flag the ship flies. U.S. law considers a ship to fly the flag of the United States if the Social Security Act defines it as an American vessel.

A member of the flight crew of an aircraft operating between the United States and Romania who would otherwise have coverage in both countries will have coverage only in the country in which the company employing the person has its headquarters. However, if the employee resides in the other country, he or she will only have coverage in that country.

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  RS 01901.030 Employment Within the United States

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  RS 01901.050 Employment Outside the United States for an American Employee

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  RS 01901.070 Coverage Outside the United States for a Foreign Affiliate or Subsidiary of an American Employer

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  RS 01901.150 Employment on American Vessels and American Aircraft

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  RS 01901.170 Employment on Foreign Vessels or Foreign Aircraft

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  RS 01901.450 Coverage under International Totalization Agreements

The Vienna Conventions provide that in general, nationals of a country who work abroad in the diplomatic or consular services of their country are exempt from social security coverage and contributions under the host country's laws; unless the host country specifically waives that exemption.

The Conventions, to which both the United States and Romania are Parties, apply to:

• Members of the staff of a diplomatic or consular mission, including the diplomatic, consular, administrative, and technical staffs;

• Dependents of members of those staffs;

• The domestic service staff of those missions; and

• Under certain conditions, the private servant employees of members of such missions.

1. General

The Agreement does not affect the coverage of U.S. or Romanian government employees to whom the Vienna Conventions apply. They remain exempt from coverage in the host country.

The Agreement establishes the following rules for government employees not covered by the Vienna Conventions:

U.S. nationals employed by the U.S. government in Romania are subject to U.S. Social Security taxes and coverage laws only.

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  Romanian national employed by the Romanian government or a Romanian government instrumentality in the United States are subject to Romanian social security taxation and coverage laws only.

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  Either country may grant an exception to the coverage rules of this Agreement if the other country agrees, and the person involved retains coverage in one of the countries. Either country may grant such an exception to an individual worker or to all workers under similar circumstances, e.g., in the same profession or working for the same employer.

2. Definitions

a. U.S. Government employee

For purposes of applying this provision of the Agreement, the phrase "U.S. Government employee" means employees of the Federal Government or any of its instrumentalities

. b. Romanian Government employee

For purposes of applying this provision of the Agreement, the phrase "Romanian Government employee" means employees of Romania.

RS 01802.050 Coverage Status — Employees of Foreign Governments and International Organizations — Policy Principle

A person who is usually self-employed in one country temporarily transfers their business activity to the other country for a period of less than five years they will continue coverage of their home country, if their home country decides that they will be doing similar self-employment work while in the other country.

A self-employed U.S. citizen, who is subject only to Romanian social security taxes and contributions under the agreement and is exempt from paying Self-Employment Contributions Act (SECA) tax, must still file a U.S. tax return every year. To show that the self-employment earnings are exempt from U.S. Social Security self-employment tax, the individual must do the following:

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  Indicate on Schedule SE that the earnings are exempt under the agreement; and

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  Request a certificate of coverage from the Romanian authorities; and

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  Attach a photocopy of the Romanian certificate of coverage to his or her U.S. tax return every year (refer to RS 02002.750) as proof of the exemption.

The rules of the agreement for eliminating dual coverage described in RS 2002.760 through RS 2002.820 cover most situations where the United States and Romania would both cover and tax a worker in the absence of an agreement. However, sometimes the application of the normal agreement rules would yield anomalous or inequitable results. For this reason, the agreement includes a provision that permits the authorities in both countries to grant exceptions to the normal coverage rules of the agreement if both sides agree.

The intent of the exception provision is not to provide workers or employers with the freedom to elect coverage in conflict with normal agreement rules. The purpose of the special exception provision is to allow a worker to continue coverage in the country where the individual normally works and has coverage, to ensure that the worker will meet eligibility requirements for retirement or disability benefits.

An employee, employer or self-employed person may request a special exception to the normal coverage rules of the agreement. Both countries must agree to the special exception and agree on the country of coverage. If either country does not agree with a proposed exception, the applicable coverage rule of the agreement determines the worker's coverage.

The US - Romanian agreement requires each country to issue certificate of coverage forms for workers who, without the Agreement, would have to pay social security taxes to both countries on the same earnings. The certificate serves as proof that the worker named on the certificate is:

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  subject to the social security taxation and coverage laws of the country issuing the certificate; and

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  exempt from social security coverage and contributions on the same earnings in the other country.

Advise inquirers that when writing to obtain a certificate of coverage, they should provide the following information:

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  Full name of worker

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  Social Security Number for U.S. certificates

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  Cod Numeric Personal (for Romanian certificates)

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  Country of citizenship

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  Name and address of employer in both countries (if self-employed, address of trade or business in one or both countries)

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  Beginning date and ending date (if known) of employment or self-employment in the other country.

International Operations or the National House of Public Pension will take the following steps to issue a certificate of coverage:

1. Review the request to determine if it can be approved. If yes, go to step 2 of this process. If no, write a letter to the requestor providing an explanation of the determination. If appropriate, advise the requestor of what is required to approve the request.

2. The United States or Romania issues the certificate, if appropriate.

3. The issuing agency sends the original and one copy to the requester.

IMPORTANT: The employer, employee, or self-employed person must present the certificate of coverage to the tax authorities in the other country upon request. Self-employed U.S. citizens or nationals, who are subject only to Romanian laws under the Agreement, must attach a photocopy of the Romanian certificate of coverage to the Schedule SE filed with the U.S. income tax return each year.