Social Security Coverage for Foreign Performing Artists and Guest Lecturers

This article outlines the statutory provisions regarding the social security status of foreign performing artists and guest lecturers, including those excluded from insurance coverage.

Insurance Exclusions
Under Section 17, Paragraph (1), Point d of Act CXXII of 2019 on Social Security Benefits and Coverage (Tbj.), insurance does not extend to individuals covered by Section 1/B of Act CXVII of 1995 on Personal Income Tax (Szja tv.). Additionally, as per Section 17, Paragraph (2), Point c, insurance does not extend to employment relationships or other work engagements (e.g., service contracts or business contracts not qualifying as self-employment) as defined in Section 4.51 of Annex 1 of the Szja tv.

Foreign Performing Artists
Foreign performing artists under Section 1/B of the Szja tv. are those earning income in Hungary from non-payer individuals for activities conducted as performing artists. This income is taxed either under an international agreement or, in the absence of such an agreement, under domestic taxation. The tax obligation is fulfilled according to this section’s provisions. To qualify, the individual must be temporarily residing in Hungary and considered foreign under the Tbj. (According to Section 4, Point 12 of the Tbj., a foreigner is someone who does not qualify as a domestic person under Point 1 of the same section.) Temporary residence is defined as staying in Hungary for no more than 183 days within any 12-month period.

Tax Obligations for Foreign Artists
Under Paragraph (1a) of Section 1/B, foreign performing artists and non-performing artists (foreign crew members) registered under Section 31/B, Paragraph (2a), Point g of Act II of 2004 on Motion Pictures, can choose to fulfill their tax obligations on income earned in Hungary from non-payer individuals either under an international agreement or, if no such agreement exists, under domestic taxation as per this section’s provisions.

Performing Artist Definition
For these rules, a performing artist is defined as an individual engaged in the following occupations per the Classification of Occupations (FEOR), regardless of whether they perform these activities as independent or dependent work (including self-employment):

2724 Composer, Musician, Singer
2726 Actor, Puppeteer
2727 Dancer, Choreographer
2728 Circus and Similar Performing Artist
3711 Supporting Actor, Extra

Social Contribution Tax
These individuals are not covered by insurance in Hungary for their performing artist activities or related engagements. However, income from these activities constitutes a social contribution tax base under Section 1, Paragraph (5), Point e of Act LII of 2018 on Social Contribution Tax (Szocho tv.). No social contribution tax is payable on this tax base according to Paragraphs (4) and (4a) of Section 5 if the individual can prove they are insured in:

another EEA member state,
an institution of the European Union, or
another state under the scope of social security agreements.
Such proof requires an A1 certificate or documentation from the relevant foreign authority.

Additional Insurance and Contribution Obligations
Individuals mentioned in Section 17, Paragraph (2), Point c of the Tbj. (those in relationships defined under Section 4.51 of Annex 1 of the Szja tv.) are not insured solely based on that relationship. Therefore, if they establish additional relationships in Hungary, their insurance and contribution obligations must be assessed according to the general rules. This category includes individuals who:

are in employment or service relationships (employment, service contracts, or business contracts) with public interest trust foundations performing public tasks, church legal entities, or higher education institutions maintained by such entities, as specified in the Annex to the National Higher Education Act, and
whose stay in Hungary in connection with this relationship does not exceed 30 days within any 12-month period.

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