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Q&A Regarding Agreement on Mutual Exemption of Social Security between China and Luxembourg

Answer
To effectively solve the problem of double payment of social insurance premiums for personnel working in each other’s country, China and Luxembourg formally signed the Social Security Agreement between the People’s Republic of China and the Grand Duchy of Luxembourg on November 27, 2017 (hereinafter referred to as Agreement). The Agreement officially entered into force on May 1, 2019. This article aims to solve frequently asked questions in the form of Q&A for clients’ reference.

Q: Which type of insurance is mutually exempted according to the Agreement?
A: The mutually exempted insurances are staff basic pension insurance in China and the pension insurance, the sick and disabled and the survivors pension insurance in Luxembourg.

Q:
Who can be exempted from paying relevant social insurance premiums in Luxembourg?
A:
1. Dispatch personnel, which refer to persons employed by an employer with a business premises within the Chinese territory and are dispatched by the employer to work in the Luxembourg territory according to the employment relationship.
2. Self-employed people, which refer to persons who usually reside within the Chinese territory, work in Luxembourg or in the form of self-employment in the territories of both countries.
3. Employees on seafaring ships which refer to persons employed on seafaring ships flying the Chinese flag, and persons employed on seafaring ships flying the Luxembourgian flag usually residing in Chinese territory.
4. Employees on the aircraft, which refer to persons employed by a headquarter and the management personnel or crew members works on an aircraft.
5. Personnel and civil servants of diplomatic and consular institutions. The personnel of the diplomatic and consular offices refer to the relevant personnel defined in the Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular Relations.
6. Exception. The competent authorities or agencies in China and Luxembourg may agree to make exceptions to Articles 6 to 9 of the Agreement for specific persons or groups of people, provided that such persons or such persons are subject to the laws and regulations of either China or Luxembourg.

Q:
Who can be exempted from paying relevant social insurance premiums in China?
A:
The conditions applicable to Luxembourg who are exempted from paying social insurance premiums in China are the same as those applicable of Chinese working in Luxembourg.

Q:
How long could the exemption period last for dispatch personnel and self-employed people from paying social insurance premiums?
A:
The maximum period for dispatch personnel and self-employed to be exempted from payment of social insurance for the first time is 60 calendar months. If the dispatch period or self-employment period exceeds 60 calendar months, it may be extended if agreed by the competent authorities or agencies in China and Luxembourg.

Q:
What materials need to be provided to apply for exemption from paying relevant social insurance premiums?
A:
Applicants need to submit the Insurance Certificate to apply for exemption from paying corresponding social insurance premiums.

Q:
Can Luxembourgers apply for exemption from paying relevant social insurance premiums in China if they cannot provide Insurance Certificate?
A:
No. For Luxembourgers who cannot submit the Insurance Certificate in China, the local social insurance agencies should urge them to participate in China’s social insurance according to relevant regulations.

Q:
Apart from the staff basic pension insurance, can other social insurances be exempted from payment for Luxembourgers working in China?
A:
No. In addition to the staff basic pension insurance as stipulated in the Agreement, Luxembourgers in China should participate in other types of social insurance in China in accordance with relevant regulations.

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