Personal income tax and social security related services

What typical employment-related challenges and issues may arise in day-to-day operations?

• Whether it is the planning of local or cross-border employment, setting up the related infrastructure, tax and social security (pension-related) consequences or compliance with legal requirements, companies face complex professional challenges.
• It is a system-wide challenge for employers to provide existing and future employees with a competitive compensation scheme that fulfils fast-changing legal requirements and simultaneously meets employee expectations, stimulates and supports employee loyalty, and can be operated in a tax- and cost-effective manner.
• Last but not least, to map and exploit tax incentives available under Hungarian legislation, affected companies must be able to answer a large number of professional questions.

At EY Hungary, based on our extensive local and international professional experience, we provide integrated support to existing and prospective clients alike.

If you have any questions, please feel free to contact our colleagues.

Planning cross-border employment, setting up the related infrastructure and dealing with tax, social security (pension-related) and immigration implications present complex professional challenges for the companies concerned.

The multinational environment and tendencies, as well as the need for organizational knowledge sharing all urge companies to engage their employees in international work for shorter or longer periods. During the planning and set-up processes, numerous questions arise concerning tax, social security and immigration matters.

EY’s experts support our clients with extensive local and global professional experience in planning, setting up and operating the cross-border mobility framework, be it a business trip of a few days, or an assignment that lasts a few months or several years. We also provide guidance on tax, social security and immigration matters for staff engaged in international work (business trips, assignments, regional positions).

Related services:

• Ensuring legal compliance related to employment
• Employment framework planning
• Implementation consulting
• Review and risk analysis of existing frameworks

Whether it is local or cross-border work, tasks arise for both the employer and the employee based on legal requirements.

The combination of our experience gained over the past decades and our up-to-date expert knowledge enables us to provide efficient and comprehensive support for our clients in fulfilling their official registration, reporting, data provision and declaration obligations in due time.

Related services:

• Completing registrations and reporting obligations
• Preparing tax returns and supporting calculations
• Applying for official certificates from the authorities
• Representing clients before public authorities

It is a system-wide challenge for employers to provide their existing and future employees with a compensation scheme that complies with legal requirements and simultaneously meets employee expectations, stimulates and supports employee loyalty, and can be operated in a tax- and cost-effective manner.

In addition to standard compensation elements, several other cost-effective options are available for employers to create an optimal benefit plan that increases employee satisfaction and retention in the long run by ensuring the financial, physical, social and emotional well-being of individuals.

EY’s remuneration experts provide comprehensive – administrative, HR and tax – support to our clients in setting up and operating a compensation scheme that is transparent and optimal for employees, meets client expectations and corresponds with the opportunities provided by law.

Related services:

• Developing tax-efficient incentive programs and remuneration schemes (e.g., cafeteria, share benefit or employee share ownership plans)
• Review and risk analysis of existing incentive schemes
• Advising on tax-efficient benefit elements that enhance employee well-being and satisfaction:
  • Housing support (workers' accommodation, housing allowance, mortgage, utility subsidy)
  • Work commute benefits
  • Healthcare and insurance financing
  • Remote work
  • Trainings
  • Corporate events, gifts

To promote employment and maintain it at a high level, Hungarian legislation makes various tax allowances available for employers, among which tax allowances related to social contribution tax and rehabilitation contribution play a prominent role.

In close cooperation with the authorities and based on our experience, we provide our clients professional and prompt support to map and utilize the available tax allowances related to social contribution tax and rehabilitation contribution. 

We provide end-to-end theoretical and practical advice on any employment related matters arising in our clients’ daily operation. For example:

• Consultancy related to the tax optimization of corporate events and business gifts
• Promotion and representation advice
• Information on tax-free benefits
• Ad-hoc advice in any field