Tax and social security
Tax and social security
In the area of taxation and social security law we support the employer’s compliance with the taxation and social security rules relating to employment. This primarily includes questions concerning personal income tax and social contribution tax, but we also deal with local taxes (such as local business tax, tourism tax) linked to employment.
Our tax planning support is linked to reorganisation or organisational restructuring carried out by employers; as part of that we help our partners to set up the planned employment structure in a way that it is beneficial in terms of taxation, and provides an opportunity to use tax reliefs or choose more advantageous taxes. We can integrate into the service the necessary corporate law tasks linked to the above with the help of our partner law firm, and we can provide a complex solution to the ideas of the employer.
Employment carrying a foreign element raises almost in every case taxation and social security questions. In case of employment of third-country nationals the employer and the employee can use tax reliefs; the former from the social contribution tax and the latter from the personal income tax. Although in the latter case the employer does not have a lot of things to do, it is reasonable to appropriately inform the employee on the conditions of use in addition to requesting a declaration, as the employee is usually not aware of them; however, during a possible authority inspection the employee will expect assistance from the employer, which gives additional tasks to the HR division.
In case of work performed by EU nationals in Hungary, or the posting of Hungarian employees within the EU, one of the key tasks is to identify the social security and taxation rules. With a view to the correct payment of taxes we provide assistance in the application of the EU social security regulation and its implementing rules, the Hungarian social security rules, and the general and exception rules of the conventions concluded for the elimination of double taxation. We have extensive experience in the application of the special rules relating to temporary agency work, with particular regard to the special Hungarian provisions applicable to hiring-out from abroad to Hungary.