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What is a Totalization Agreement? This is Vincenzo Villamena from Online Taxman. A Totalization Agreement is not a Tax Treaty first off. A Totalization Agreement is an agreement between two countries, lets say the United States and another country, in regards to Social Security, meaning that if you pay into one countrys system for Social Security then youre not liable to pay into the other countrys system for Social Security. For example the US and the UK have a Totalization Agreement. So if I were a sole member LLC or I should say sole member limited company in the United Kingdom and I was paying into NIH, which is their equivalent of Medicare that you know when I did my Schedule C for being self-employed I would not be subject to the 15% self-employment tax that the U.S. charges for Medicare Social Security. So you could file your US tax return and you could show a certificate, and there is a process as far as showing certificate and being exempt from self-employment tax in the