France, Uruguay To Ratify Social Security Agreement

By Editorial 07 August, 2012

The French government has recently announced a draft law to ratify a new Social Security Agreement (SSA) with Uruguay.

After its ratification was postponed for over 18 months throughout the latter end of President Nicolas Sarkozy's mandate, the new Socialist government has finally decided to submit the SSA to Parliament for ratification.

This SSA provides notably for recognition of foreign social security contributions for expatriates when computing the effective amount of benefits they are entitled to, in particular with regard to pensions. As a consequence, the residence criterion for eligibility to pensions will be lifted, thereby ensuring payment of pensions to former residents of a contracting state.

In addition, the new SSA between France and Uruguay provides for recognition of social security contributions made in third countries. This latter part is said to be key to fostering further bilateral investment because a similar convention between 22 Latin American states will apply from next year.

This new SSA is part of a fresh wave of bilateral economic and administrative cooperation between France and Uruguay. In January 2010, a Tax Information Exchange Agreement was also signed to crack down on tax evasion.

Tags: Expatriates | Tax | Investment | Pensions | Uruguay | Law | Social Security | France |


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