Employment under special tax number
In cases where a foreign company does not establish a Hungarian seat or premise, therefore it does not qualify as a resident under Hungarian law, but you want to employ someone in Hungary, you have the opportunity to apply for a special tax number related to employment. In this case, the foreign company will deduct the contributions and the personal income tax from the employee and pay together with employer’s obligations under the received tax number.
In what cases is it applicable and when is not the special tax number?
A foreign company may fulfil its tax obligations under a special tax number if it does not buy, hold or rent a property. In these latter cases, it is considered as an established premise so it is a must to found a company, create a branch or a commercial representation. In contrast, the employment of Hungarian colleagues in software development companies who work in their own home, not in an office is a typical case, so these kind of companies need a special tax number for their employment. Of course, in these cases, the Code of Labour should be applied properly.
What services do we provide for the special labour tax number?
- We give advice to their clients, and we will examine whether the special tax number for employment is sufficient,
- We collect the documents of the Company, on the basis of which the Hungarian tax authority will set the VAT tax number,
- Announce the activity at the tax office
- We lead the records required by the tax authorities and regulations,
- We ask declarations from the employee,
- Submit the social security return,
- We prepare payroll slips,
- Exit the employee and make outgoing papers,
- At the end of the year we produce tax certificates and social security certificates,
- Inform clients about the time, method and amount of payment
- If you no longer need the Hungarian tax number, we will delete the tax number
