Notification Requirements for Posted Workers in Hungary

While many professional articles discuss the personal income tax and social security status of workers sent to Hungary from other countries, the notification and registration rules for these workers are often overlooked. This article highlights two key notification obligations for posted workers.

Notification Obligation to the Tax Authority
This is not a new requirement, and non-compliance can result in a general penalty of up to 500,000 HUF per missed notification. The purpose is to inform the tax authority about individuals who have tax obligations but are not yet in its records. Here are the essential details:

Legal Basis:
Act CL of 2017 on the Rules of Taxation, Section 41.

Obligated Party:
Any legal entity or organization employing a foreign individual assigned to perform non-independent activities (excluding public benefit trust foundations and higher education institutions).

Subject of Notification:
A foreign national considered a posted worker to Hungary, whose arrival or change in circumstances during the tax year triggers or is expected to trigger a personal income tax (PIT) obligation.

Data to be Reported:
Basic information about the posted worker and the foreign employer, including the start and end dates of the employment.

Notification Deadlines:

Start: Within 30 days of commencing the activity.
End: 30 days before the end of employment or departure from the country. If the information is unavailable within this timeframe, notification must be made the day after the employment ends, stating the reason for the delay.
Mode of Notification:
Form ‘T104’ data reporting sheet.

It is important to note that this notification obligation is linked to the personal income tax obligation arising from Act CXVII of 1995 on Personal Income Tax and applicable double taxation agreements or reciprocity. Therefore, the receiving party is not required to notify for posted workers who are not expected to have or do not actually incur a PIT obligation.

Notification Obligation to the Employment Supervision Authority
The Employment Supervision Authority thoroughly evaluates all factual elements of the work to determine if a worker qualifies as a posted worker under the framework of cross-border service provision. This notification aims to collect such data.

Legal Basis:
Government Decree 115/2021 on the Activities of the Employment Supervision Authority, Section 27.

Obligated Party:
Primarily the foreign employer, but anyone can make the notification, including a person authorized by the foreign employer or the receiving Hungarian company.

Subject of Notification:
Posting from another EEA member state to Hungary, if employment in Hungary occurs within the framework of cross-border service provision as per Section 295 of Act I of 2012 on the Labor Code (Mt.).

Data to be Reported:
Information regarding the service provider, the activity, and the employment.

Notification Deadlines:
No later than the start of the service provision activity.

Mode of Notification:
Through the electronic interface operated by the Employment Supervision Authority, updated on March 1, 2024. Previously registered notifications remain valid and do not need re-submission: https://mvff.munka.hu/#/kikuldetes.

Although this notification obligation applies only to posted workers from EEA states, it does not mean that data on individuals from third countries are not required. In such cases, notification can be made without registration via email to: foglalkoztatas.felugyeleti-foo@ngm.gov.hu.

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