People who go to work in Japan from the UK or come to the UK from Japan will only be liable to social security contributions in their `home’ country once a new Double Contributions Convention (DCC) between the two countries enters into force.
The new Double Contributions Convention between the United Kingdom and Japan was signed in Tokyo today.
Welcoming the signature of the Convention, the Paymaster General, Dawn Primarolo, said
“This agreement is a welcome further step in building trading relationships between our two countries. It will help promote the free flow of labour and so stimulate trade and investment between the UK and Japan.”
A further Press Release will be issued when the text of the Agreement is published as the schedule to a draft Order in Council and laid before Parliament. Copies of the draft Order will be available at that time from The Stationery Office and on the Internet at http://www.hmso.gov.uk.
NOTES FOR EDITORS
A Double Contributions Convention aims to eliminate a double charge to social security contributions arising when workers move temporarily from one country to another.
The United Kingdom is a party to a number of social security agreements. The last Double Contributions Convention to be concluded was with the Republic of Korea last year. Within the European Economic Area, EU Regulations ensure that workers posted to or from the UK are protected from simultaneous liability for contributions in both countries.