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Employing expats in Hungary or posting Hungarian employees abroad results in new obligations for any employer. Our tax and labour law experts gathered all the important information related to cross-border employment and global mobility in Hungary, to provide you with an easy overview on conditions for tax residency, personal income tax and social security contributions or penalties for non-compliance.
Our local tax, payroll and labour law experts are here to help you – as an expat or an employer – to obtain essential expert advice, so that you can effectively address all the matters related to cross-border mobility in Hungary and other locations globally.
In Hungary, a tax resident is:
A person who is a citizen of Hungary (except dual citizens), as formal criteria
A citizen of the European Union who spends more than 183 days per calendar year in Hungary
A third-country citizen with permanent residence status, whose vital interest is in Hungary
Any natural person who has a permanent home (habitually residing in the country) or habitual stay in Hungary (where they stay for more than 3 months without the intention to leave)
The due date for filing falls on May 20 with the possibility of extension, however, the tax office needs to be notified beforehand. Application for justification may not be refused if the private individual has any income from abroad, and in this case penalty for the delay in filing may not be imposed until November 20.
Delayed filing of the tax return: The fine ranges from HUF 0 up to HUF 200,000 (private persons) or up to HUF 500,000 (legal entities)
Delayed payment of the due tax: prevailing central bank (MNB) base rate plus 5% from the value of overdue tax
Delayed or missing registrations at tax authorities: up to HUF 1,000,000, or up to HUF 500,000 if the employer registers the employee, but erroneously, defectively or with false data content
Delayed or missing report on monthly salary or withholding tax from salary: up to HUF 500,000
Delayed report on social security: up to HUF 500,000
Delayed payment of the social security contributions: prevailing central bank (MNB) base rate plus 5% divided by 365 for each day from the overdue payment
Delayed or missing registrations for the purposes of social security: up to HUF 1,000,000
Delayed report on health insurance: up to HUF 1,000,000
Delayed or missing registrations for the purposes of health insurance: up to HUF 1,000,000