New social security rules on working in two or more Member States
As of 1 January 2011, work performed outside Hungary for a foreign employer may incur a social security liability in Hungary as a consequence of amendments to the Act on Eligibility for Social Security Benefits and Private Pensions and the Funding for These Services.
Under the Convention’s principal rule, only the legal regulations of a single Member State can be applied.
The income of private persons employed in multiple Member States must be treated as if all their income were received in one Member State.
- Employees who work in a number of Member States for a single employer are subject to the legal regulations of their country of residence, provided they carry out the majority of their activities in their country of residence.
- If an individual has multiple employers and / or multiple employment or other contractual relationships where the individual resides will prevail.
- Contribution payment liability also now arises in Hungary on income received for work performed abroad on the basis of a foreign employment relationship.
- Foreign businesses are also subject to reporting, contribution deduction and return filing obligations.
As the deadline of the submission of the income tax report is approaching (20th of May 2011) we ask you to indicate your request in assistance in time.
In case of demand, based on a preliminary power, accace shall fill in and then submit the necessary documents to the Authority of Tax and Finance (APEH) on behalf of the Client.
Changes in the sick payment
In case of the period of 2 year health insurance, 60% of the average income can be considered as sick payment. If the insurance period is shorter or hospitalization will take place 50% of the average income is considered as sick payment.
The parliament maximized the limit of the sick payment. It is twice of the minimum wage per month from the beginning of May 2011.
In this case the employee can get maximum 5200 HUF per day.
Revenue from the interest rate
The foreign person / organizations do not have to pay withholding tax after interest, patent fee and fee after services.
Changes in the VAT
The VAT of the musical performance activity is reduced from 25% to 5%.
Accace team can inform the clients not only about the changes in the accounting and tax system but takes up the job of VAT return, representation towards the Hungarian Tax Authority with full power in the submission of request for VAT refund here in Hungary and abroad also. They can manage documents handling related with VAT report/ payment and refund.
Reorganization of the tax authorities
Authority of Tax and Finance (APEH) and the Hungarian Customs and Finance Guard (VPOP) have merged into a newly established agency, the National Tax and Customs Office (NAV).
Two departments are established within the new agency:
- Tax department that functions as the tax authority
- Customs department that functions as the customs authority
accace team summarizes the changes in its Newsletter regularly and prepares tax report, payment and reclaim for its clients. Due to the professionalism we usually make preparation of the statutory reports and arrange audits in time also. Our activity not only covers Hungary but extended for the region also.
As we have professional connection with the colleagues of the Tax Office on a daily basis, we are ready to offer our support in the following fields:
- Income tax
- Corporate tax
- Local tax
- Social security
- Excise duty
- Complimentary small taxes
Should you have any question, please feel free to contact us:
Accace Kft., Tel.: + 36 1 802 7695, Email: email@example.com