How to manage the tax affairs of foreign managers

It occurs often that a multinational company employs a foreign manager based on an employment contract or secondment. In the first case the Hungarian company is considered as the legal and the economic employer as well, therefore the salaries are payed directly by them. In the second case, the employee maintains the employment contract in the „mother country”; therefore, the salaries are still paid by the parent company (naturally the Hungarian company pays a „service fee” for the secondment to the parent company). The mentioned cases differ from many points of view; therefore, an improper classification may trigger many issues.

The protocol is in your hands – is this the end of the world?

As written in our former article about the process of tax controls, the audit ends with handing over a protocol. Is there any hope left in case of negative result and can we challenge the opinion of the tax authority?

In our view, nothing is lost yet, even if you have the minutes of tax audit in your hand: the solution may be in the legal remedies. Referring back to our already cited article, it would be the best to avoid such by acting totally rightful without contextual or even formal mistakes, to have time-to-time health checks to mitigate chances for negative tax audit outcome situations, or finally to involve a tax expert into the process from the very beginning who can represent your interests effectively by knowing the rules of the game. Nevertheless, if sand gets into the machine somehow, there is not all lost by the takeover of the minutes. In this article we show the steps of remedy in details.

 

We let you know how a tax audit is carried out in Hungary

Aiming at the prevention of tax evasions and their fast detection, the Hungarian financial government introduced various arrangements and also planning more. Among them one can find creative new solutions, systems that are based on the new technology and on the international information exchange, but even the old time classic methods too. Now we are presenting one of these evergreens: the process of tax audit.