Expat taxation consulting and compliance work, tax returns

Multinational companies frequently send their employees to work at group firms in another country. Hungary has a significant number of expats too (i.e. employees sent to Hungary from abroad) working in a wide range of ways. Foreign workers tend to stay a few years in Hungary, and after their posting finishes they return to the country they came from, or move on to another group firm in a different country. We are also increasingly seeing Hungarian employees working at Hungarian companies being sent to group firms abroad, or to foreign business sites of Hungarian subsidiaries. 

Why is expat taxation consulting useful?

In both cases it is important to study the provisions of double taxation conventions with an expert eye to ensure tax liabilities are properly assessed (with postings to companies that have no such convention, other special rules have to be examined, and double taxation cannot be ruled out in many cases). Alongside the taxation aspect, many ignore the mandatory social security payment obligations. These items frequently even exceed the tax burden itself.

Social security payment liabilities of expats

Our team has particular expertise on the taxation of expats and social security payment liabilities. Our primary objective is for the tax payment and tax return process to flow as smoothly as possible for the posted employees, despite its complexity. We help to assess which country has the right to levy taxes, and we provide assistance throughout the entire administration process for meeting tax liabilities. If the tax authority carries out an inspection regarding private individuals, our colleagues save the posted foreign employees from the burden of having to attend face-to-face meetings. If required we can offer complex solutions drawing on the help of the GES team of WTS Global’s international network.

Our key services related to expat taxation consulting: 
  • working together with the foreign HR departments, foreign tax consultants and the posted employees to assess the right taxation and social security contribution payment obligations (including discussions on staff joining and leaving)
  • registration of foreign companies for contribution payment purposes
  • tax and tax administration tasks in relation to permanent establishments and commercial representations
  • preparation of quarterly tax advances
  • monitoring of legislative amendments, providing information to posted employees and HR departments
  • preparation of annual personal income tax returns, with due consideration of the special taxation for incomes other than salaries
  • support during tax inspections
  • reviews of tax current accounts, requesting annual income certificates
  • requesting residence certificates, tax numbers and social security numbers

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