MeRSZ online
okoskönyvtár
Több száz tankönyv egy helyen.
Online. Bárhol. Bármikor.
Taxation in General: Hungarian Tax System
Taxation of the income from employment
Although in the Model Convention taxation of the income from employment is discussed only at the end (Article 15 of the Model Convention) we should start introducing the Hungarian practice by discussing the taxation of income obtained from employment. According to 2. § (6) of the Personal Income Tax Act (Szja) it is the Personal Income Tax Act which defines the titles of the taxable income in the Republic of Hungary. When establishing the title the legal relation that otherwise exists between the parties (natural person and the payer of income, or the mentioned parties and some other person) and the circumstances of obtaining the income must be taken “into consideration”. Thus the contract between the two parties shall determine the title for the income which, in conformity with the Hungarian legislation, shall be taxable under the same title as it had been defined by the parties to the employment contract. The scheme that follows gives a little help in determining where is the world income taxed, i.e., our annual income and other revenues.
Harvard
(): . : .
: /hivatkozas/m1021tights_594/#m1021tights_594 ()
Chicago
. . . : .
(: /hivatkozas/m1021tights_594/#m1021tights_594)
APA
(). . .
(: /hivatkozas/m1021tights_594/#m1021tights_594)
11. Figure. The scheme of tax liability
Source: by own chart
According to the scheme, the employee is a tax resident of Hungary, but he/she works in country “B”. Where shall he/she be taxed? He/she can be taxed in his/her country of residence, if he spends less than 183 days in country “B”, if the employer is not a tax resident of country “B” or the wage burdens are not covered by the business premises in country “B”. The country of tax residence shall be entitled to tax the employee in question only in the event that all the three criteria subsist simultaneously. In the opposite case, i.e., when the employee spends more than 183 days in country “B” where his/her employer is a tax resident, or if the business premises in country “B” shall be responsible for the wage burdens, then the employee shall be taxable in country “B”. In this case it is enough if even one criterion subsists and then the taxation rules of country “B” shall prevail.
Several obligations and, simultaneously, opportunities result from the above. If we are as the first case describes, natural persons - tax residents of Hungary and we work in country “B”, but do not spend 183 days there, our employer has no tax residence there, in county “B”, and not the premises he has there cover the costs of our employment, then we have to enter our income from this employer as income from employment into the tax returns in Hungary. If, however, any one of the criteria does not subsist, then we shall be taxed in country “B”, but our tax liability in Hungary for the entire year shall not cease. If there exists a treaty between the two states for the avoidance of double taxation and it prescribes full exemption, the income realized abroad still needs to be entered into the tax returns, as there may be exemptions that are subject to a certain wage limit. If the exemption is partial only, then this amount shall by all means be entered into the tax returns, but the income tax falling on it may be deducted. If there is no treaty for the avoidance of double taxation between the two states, then the limited credit described above shall apply, i.e., the tax for the income realized abroad calculated using the average Hungarian tax rate shall be deducted, but this sum must not be more than 90 per cent of the tax paid in the country of employment. We must notice, that in the event that the amount calculated according to the tax rate applicable abroad is more than the tax calculated according to the Hungarian regulations, although no double taxation in the legal meaning shall result from it, in the economic meaning it shall be double taxation, for we cannot deduct from the personal income tax payable in Hungary the entire amount of the income tax paid abroad. If we are tax residents in Hungary, the Hungarian statutory provisions regarding cost redemption shall apply, which means that against the cost reimbursement received for the costs recognized by law can be recognized only, and the difference shall increase the basis of assessment.
Tartalomjegyzék
- Taxation in general: Hungarian Tax System
- COPYRIGHT PAGE
- I. Chapter. First things first
- II. Chapter. Social security system – social solidarity
- III. Chapter. Personal Income Taxation
- IV. Chapter. Calculation of the personal income tax and contributions for earned income
- V. Chapter. Certain defined benefits, fringe benefits (cafeteria), separate taxable income
- VI. Chapter. Corporate tax: double taxation or the social expenditure of the enterprises
- VII. Chapter. Hungarian Tax reform 1988-2020
- VIII. Chapter. Value Added Tax
- Rudiments of sales taxes
- Main principles and peculiarities of the VAT system
- The Hungarian VAT system
- VAT subject (Tax client)
- Basis of assessment
- Scope of those liable to pay VAT and reverse taxation
- Exemptions from VAT
- Genuinely VAT exempt transactions
- Tax rates in VAT
- Special methods for establishing VAT
- Taxation of travel agencies (tour operators) based on their margins
- Small rural producers – compensation surcharge
- Secondhand trading – taxation based on the difference
- Rudiments of sales taxes
- IX. Chapter. Fundamental principles of international taxation, structure of the model agreements taxation of salaries
- Summary
- References
Kiadó: Akadémiai Kiadó
Online megjelenés éve: 2022
ISBN: 978 963 664 137 5
Taxation is a scheme for the state to provide revenue. The so collected money could then cover the public spending of the government. These are the so-called allocative and redistributive functions of the state budget. Although, taxation theory discusses the various tax types and analyses the various taxation tools very extensively, there is no absolute answer to the question, when and what type of taxation system would be optimal. Thus this introductory book on taxation deals with the three basic types of taxes - the income tax, the VAT and the corporation tax - in a very pragmatic way. There are legal texts and cases from both the international and also from the relevant Hungarian practice. This book is recommended not only for students of economics but also for law students and practitioners beside anyone who is interested in the basic regulations of taxation.
Hivatkozás: https://mersz.hu/lakatos-taxation-in-general-hungarian-tax-system//
BibTeXEndNoteMendeleyZotero
gomb segítségével választhatsz, hogy fejezetről fejezetre lapozva vagy inkább folyamatosan görgetve olvasnád-e a könyvet.
