Tax treaties and totalisation agreements have been saved on this last point: with this agreement, which offers international beneficiaries the protection of social security by coordinating contribution periods and benefits, these beneficiaries generally do not lose their right to social benefits in the country of origin when they work in another country, and this agreement facilitates their access to benefits arising from contributions made in the host country. This could have a positive effect on a worker`s decision to contract in Brazil or Switzerland, knowing that the period during which he is working on the assignment does not affect the determination of the right to future benefits. It is important to note that the transitional and final provisions of the agreement (Article 34) are not yet fully clear. The member company KPMG International in Switzerland has been warned that the Swiss Social Security Administration (BSV) recommends the following practice until the transitional arrangements are finally agreed: the social security agreement between Switzerland and Brazil (“agreement”) came into force on 1 October 2019. It coordinates the social security rules of the two contracting states on old age, survival and disability and regulates the payment of public pension benefits abroad. Under the agreement, people can stay up to 60 months in their country of origin if they are seconded between the two countries. The agreement does not provide for an increase in insurance periods for determining the right to social security benefits. In general, the agreement is similar to other social security agreements concluded by Switzerland and is in line with international standards that generally apply to such agreements. The material scope of the convention covers the laws of both states on old age, survival and disability insurance. It deals in particular (i) with equal treatment between nationals of the two States Parties, (ii) access to social security benefits of the contracting states and (iii) the payment of ordinary state pensions abroad. This agreement may be amended in the future by endorsements which, after notification of the completion of the necessary internal judicial procedures of each contracting state, will be considered an integral part of this agreement as soon as they enter into force.
These agreements can be concluded retroactively if they specify. With effect on 1 October 2019, a social security agreement (the agreement) between Switzerland and Brazil came into force, allowing the resulting workers to fall under the social security law of a country (Switzerland or Brazil). International social security agreements are part of Brazil`s foreign policy, implemented by the Ministry of Foreign Affairs (www.mre.gov.br). These agreements are the result of the efforts of the Ministry of Social Security (www.previdencia.gov.br) and diplomatic agreements between governments. The possibility of staying in the other country outside is possible for up to five years. In both countries, only old-age, survival and disability insurance schemes are covered, and other elements of social security are not covered. Responsibility for these other elements must be established in accordance with local rules. International social security conventions guarantee the provision of social benefits, although this does not change the country`s legislation.