Expat compliance

In the case of multinational organizations, certain employees often take a secondment in another group member on a temporary basis. One of its objectives can be the promotion of exchange of experience on inter-company level or supporting the direct supervision of parent companies at the subsidiaries.

In connection with the seconded employees, specific reporting, tax payment and tax declaration obligations arise whose satisfaction requires a great caution as the tax considerations of at least two separated countries must be taken into account. In addition, we shall pay attention to the application of the corresponding EU and Hungarian social security regulations, and also to the compliance with the rules of registration, declaration and payment of contributions.

Our services:

  • Personal meeting in connection with the seconded employee’s legal, financial, income, taxation and social security issues at the beginning and/or at the end of the secondment
  • Definition of tax residence for the determination of total or partial tax liabilities
  • Determination of the state of social security liabilities (where to pay contributions and where will the seconded employee be secured?)
  • Tax authority registration – requesting tax identification number (tax number)
  • Social security registration – requesting social security number
  • Legal support in the preparation of employment contract
  • Legal support in the designation of Hungarian employment structure
  • Tax law interpretation in specific issues (e.g. tax liabilities of certain incomes)
  • Calculation of quarterly personal income tax advances
  • Preparation and submission of yearly personal income tax return
  • Calculation of monthly social security contribution, submission of monthly social security contribution return
  • Checking the seconded employee’s tax account balance, submission of request of replacement of payments
  • Requesting tax authority certificates (certificates of taxes and incomes, proof of residence)
  • Representing the seconded employee in other tax administration procedures in front of the tax authority (tax investigations, extraordinary tax assessment etc.)
  • Regular information on the changes of laws