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hi my name is Mike Phillips and Im a business analyst here plus today Id like to talk to you about totalization agreements which are also known as bilateral social security agreements most countries have social security programs which are funded by taxes levied on wages subject taxation in that country historically when some we moved abroad they might find themselves in a situation where they owed social taxes in both the home and host location on the same wages to eliminate this double taxation many countries have entered into totalization agreements with each other these agreements exempt individuals from paying Social Security taxes neither the home or host location for moves that are planned less for less than five years typically these taxes are paid in the home location if a move is plant last longer than that usually the taxes will be paid in the host location in addition to preventing double taxation totalization agreements also help to protect your employees by filling gaps