Taxation of international executives
Are there special residency considerations for short-term assignments?
Are there special payroll considerations for short-term assignments?
What income will be taxed during short-term assignments?
No special rules; general rules apply.
Are there any additional considerations that should be considered before initiating a short-term assignment in Hungary?
An economic employer testing is recommended to be initiated in order to assess whether taxation arise. This is recommended in case of all short-term assignments.
Also, as short-term assignments needed to be registered with for labor inspection purposes, it is anticipated that the tax authority will have better insight in terms of short-term assignments, business trips.
All information contained in this publication is summarized by KPMG Tanácsadó Kft., the Hungarian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on Act CXVII of 1995 on Personal Income Tax; Act CL of 2017 on Rules of Taxation; the Web site of the Hungarian Tax Authority; Act LII of 2018 on Social Tax; Act CXXII of 2019 on the Eligibility for Social Security Benefits and the Funding for These Services; Act XCIII of 1990 on Duties; Act C of 1990 on Local Taxes; Act CXXVII of 2007 on Value Added Tax; Act I of 2007 on the Admission and Residence of Persons with the Right of Free Movement and Residence; Act II of 2007 on the Admission and Right of Residence of Third-Country/Jurisdiction Nationals and the Website of the Consular Service Hungary.
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