Can Employment in Brazil Be Counted Towards a Pension in Ukraine?
Many people begin thinking seriously about their pension only shortly before they intend to apply for it. This approach can create significant difficulties, as there may not be enough time to collect all the necessary documents. More importantly, unexpected problems may arise that can delay pension entitlement or significantly affect the amount of the pension.
One such issue concerns employment abroad. Periods of employment or insurance accumulated in another country are not always automatically taken into account when determining pension entitlement in Ukraine. This issue may also arise for Ukrainians who have worked in the Federative Republic of Brazil.
Recognition of employment and insurance periods accumulated in Brazil depends on the international social security framework applicable between Ukraine and Brazil. In the absence of an applicable agreement providing for the aggregation or mutual recognition of insurance periods, periods of employment in Brazil are not automatically included in the insurance record required for a Ukrainian pension.
At the same time, Ukraine and Brazil have concluded a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income. However, a double taxation convention should not be confused with an international social security agreement: it regulates taxation but does not, by itself, establish rules for recognising foreign insurance periods for pension purposes.
The Convention between Ukraine and Brazil contains provisions governing the taxation of pensions and other similar income received by individuals whose pension income is connected with one country while they reside in the other. Its purpose is to allocate taxing rights between the two states and prevent inappropriate double taxation of the same income.
Therefore, two separate issues must be distinguished: whether employment in Brazil can be counted towards pension entitlement in Ukraine and how a Brazilian or Ukrainian pension is taxed when the recipient resides in the other country. These matters are governed by different legal rules.
Anyone who has worked in Brazil and intends to apply for a pension in Ukraine should retain documents confirming employment, earnings and participation in the Brazilian social security system. The applicable Ukrainian legislation and international agreements should be checked at the time of the pension application to determine whether and how the relevant periods may affect pension entitlement.
