New Delhi: The Indo-American Chamber of Commerce has called for expediting the signing of the Totalisation Agreement between India and the US in order to benefit software experts and other Indian professionals working in that country on short assignments.

The Tax Avoidance Treaty on Social Security, known as the Totalisation Agreement, will enable Indian nationals working in the US to save substantial amounts as they would not be legally bound to contribute towards social security tax, which is upwards of 21 per cent of the total earnings of an employed or self-employed person in the US, the chamber has said.

Vinod Chandiok, the chambers president, says the stipulation in the US that foreign nationals working there should pay a steep social security tax has created problems, particularly for Indian software professionals working on H1-B visas who are in the US on a maximum legally permissible tenure of six years.

These professionals contribute a substantial part of their earnings towards the social security tax, but to avail of the benefits under this system, a foreign national has to stay a minimum of 10 years in the US, he says. "Therefore, most Indian nationals working on short-term assignments have to forgo substantial contributions made to the US tax authority."