Personal income tax related services
In today’s globally mobile environment, it is becoming more and more frequent that individuals receive income from various countries, most typically, due to cross-border assignments or investments (e.g., salary, share options, dividends, interest, capital gains, rental income). Such individuals may wonder: Where do I report this income? Where do I pay tax? May I reclaim the tax withheld abroad? Where do I pay social security contributions? Anything else I need to pay attention to? The answers depend on the actual circumstances (such as tax residence, source, and type of income, etc.) that are regulated by local and international legislation.
- Analyzing double tax treaties, social security treaties, social security coordination rules within the European Union;
- Determining place of taxation and place of payment of social security contributions;
- Calculating foreign source income and the Hungarian tax and social security liabilities;
- Assistance with reporting foreign source income in Hungary;
- Assistance with foreign tax credits, and reclaim of tax withheld abroad exceeding the applicable treaty rate.
Non-Hungarians in Hungary
As a result of globalization and rapidly extending international commercial relationships, the number of foreign individuals assigned to work in Hungary is increasing. Clarifying the tax and social security position of these individuals is important not only for them but also for their foreign employers and the Hungarian host entities.
- Determining tax residence, economic employer, etc. under the applicable double tax treaty;
- Determining the social security position of the foreign individual;
- Determining the tax and social security implications of benefits provided to foreign employees;
- Quarterly advance tax calculations;
- Preparation of annual income tax return.
Employee and management incentive schemes
Having an efficient employee incentive scheme is of key importance in order to attract and retain employees, especially key employees and management whose replacement would be particularly difficult. Employers intend to set up cost efficient incentive schemes, and tax efficiency is also an essential factor to take into account when employee incentive schemes are designed.
- Designing various management and employee incentive schemes (employee share ownership or share option programs), analyzing the related tax implications, tax planning, obtaining rulings from tax authorities;
- Advising on the Hungarian tax and social security implications of foreign share incentive schemes;
- Advising on Cafeteria schemes, optimization of tax and social security contribution consequences;
- Due diligence of existing Cafeteria schemes, advising on Cafeteria schemes before implementation.
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