Social contribution tax, social security, simplified public charge contribution
Exemption from social contribution tax for foreign performing artists and crew members
From 1 January 2023, performing artists and crew members posted to Hungary from a country affected by the social security convention and opting for the simplified taxation scheme should also be exempt from the social contribution tax. Until now, this option was only available to the performing artists and crew members secured in the EEA states. The exemption is conditional to a certificate issued by the concerned foreign state.
Simplified administration rules related to the cancellation of the health insurance service contribution
It happens relatively often that the Hungarian Tax Authority imposes a health insurance service contribution on Hungarian citizens who start working abroad. Under the old rules, the cancellation of this obligation should have been requested at the tax office, and the tax office contacted the social security agency as the registration body. According to the new regulation, it is no longer necessary to contact the social security agency, so it will be easier and faster to cancel the wrongly imposed obligation at the tax office. Furthermore, at the same time as the cancellation, the tax office also notifies the health insurance agency of the foreign insurance relationship, which invalidates the Hungarian social security ID number. This simplifies and speeds up the administration.
Simplified public charge contribution
As of 1st January 2023, the amendment already enacted for 2022 by a government decree will be codified by law. According to the amendment, the sole proprietors are also allowed to opt for a taxation scheme whereby their public charges due for their registered activities can be settled by way of the simplified public charge contribution in the year when they operate as sole proprietors subject to the KATA scheme.
***
Should you have any questions regarding this newsletter,
the tax experts of VGD Hungary will be pleased to assist you.
This newsletter provides general information and does not constitute tax advice
