Service Canada Social Security Agreement: What You Need to Know
If you plan to live and work in Canada as a foreign resident or move to another country after working in Canada, you may be eligible for social security benefits in both countries. This is possible through Service Canada Social Security Agreements.
What is a Service Canada Social Security Agreement?
Service Canada has negotiated and signed bilateral social security agreements with over 50 countries worldwide. These agreements aim to prevent dual social security taxation and protect benefit entitlements for people who have lived or worked in multiple countries. Essentially, they allow you to move between countries and maintain your social security coverage.
How Does It Work?
If you are working for a Canadian employer and also paying social security contributions in your home country, you may be subject to dual taxation. However, the Service Canada Social Security Agreement will provide relief by exempting you from paying social security taxes in Canada.
Additionally, the agreement may allow you to combine your social security credits earned in both countries to qualify for benefits. So, if you worked in Canada for a few years and then moved to your home country, the agreement may allow you to count your Canadian work experience towards your social security entitlements in your home country.
Who is Eligible?
Eligibility for a Service Canada Social Security Agreement depends on your citizenship, residency status, and work history. Generally, you must be a resident of one of the countries that have signed a social security agreement with Canada and have paid into the social security system in both countries. However, eligibility requirements may vary depending on your specific situation.
How to Apply
If you think you are eligible for social security benefits under a Service Canada Social Security Agreement, you can contact Service Canada for more information and to apply. Service Canada will review your application and determine your eligibility for benefits.
In conclusion, the Service Canada Social Security Agreement is an important resource for people who have lived or worked in multiple countries and want to maintain their social security coverage. If you are eligible, take advantage of this agreement to protect your social security entitlements and avoid dual taxation.