“Currently, U.S. companies that employ U.S. citizens in Hungary must contribute to both the U.S. and Hungarian social security systems. When the Agreement takes effect, U.S. and Hungarian employers and their employees will contribute to either the U.S. or Hungarian social security system, but not both,” according to a press release from the U.S. Embassy. “On the American side alone, this will result in approximately 500 U.S. workers and their employers sharing in annual tax savings estimated at $20 million over the first eight years of the Agreement.”
According to the statement, “Some workers who divide their careers between the United States and Hungary fail to qualify for social security benefits from either country because they do not meet minimum eligibility requirements.” The agreement “will result in approximately 10,000 new U.S. and Hungarian beneficiaries after the first eight years” of signing.
The agreement can take info effect follwing the approval of both the Hungarian Parliament and the U.S. Congress. “The United States has similar social security agreements with 25 other countries, including Australia, Canada, Chile, Japan, Norway, South Korea, Switzerland, and many other countries in the European Union,” the statement added.
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