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In the event that an employee is employed in Hungary by an employer with registered offices in another country, such employee shall, as a general rule, become insured in Hungary.
Our offer is addressed to foreign enterprises not obligated to be registered under Hungarian law which employ private individuals in Hungary in the framework of a relationship involving an insurance obligation.
The foreign employer shall be obligated to assess and deduct 10% pension contribution, and 8.5% health insurance and labour market contribution (collectively: “social insurance contribution”) after the income taxable in Hungary paid to the employee, and to pay it to the state tax authority together with the 19,5 % social contribution tax encumbered on it (hereinafter: “social contribution tax”).
Obligations of registration, social contribution payment, and social contribution tax payment as related to the legal relationship entailing an insurance obligation, as well as the obligation to submit returns must be performed
In the event that a foreign enterprise meets its obligations directly by itself, it is obligated to register with the tax authority before the commencement of such insurance. In the event of any omission of such employer registration, the obligations of registration, social contribution payment, and social contribution tax payment – as well as of the submission of returns – related to the insurance of the natural person employed shall be borne by the employee, together with any legal consequences following from any failure to meet such obligations.
The electronic returns submission, data disclosure, and payment obligations related to social insurance contribution and social contribution tax must be met on a monthly basis, by the 12th day of the month following the current month, while personal income tax payments must be made on a quarterly basis, by the 12th day of the month following the relevant quarter.
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