I have foreign or multi-country income and need to handle taxes
4 tasks in suggested order
1. Determine your tax residence using Hungarian rules, the other country’s rules and, where applicable, the double-taxation treaty in that order.
Before deciding where and how foreign income must be declared.
NAV and the tax treaty with the country concerned.
Residence, family/personal and economic ties, days of presence and income.
Citizenship alone is not the same as tax residence, and a simple '183-day rule' does not resolve every case.
Official source: nav.gov.hu
2. For each type of income, record where the income arises and, for employment income, where the work is actually performed.
Before analysing which country has the right to tax.
Your own records / NAV guidance.
Employment contract, work locations, payer statements and income certificates.
Different types of income may be governed by different treaty articles.
Official source: nav.gov.hu
3. Check the treaty currently in force with the other country and the rule for the relevant type of income; if there is no treaty, apply the domestic rules.
When determining the tax return and tax obligations during the year.
NAV – current tax treaties and information booklet.
Countries involved and types of income.
The taxation of foreign employment income cannot be determined by one universal rule; tax residence, the place where the work is performed and the applicable treaty must be considered together.
Official source: nav.gov.hu
4. Meet the Hungarian filing and payment obligations under the applicable rule and keep evidence of foreign income and tax paid.
During the relevant tax year and when filing the annual return.
NAV.
Foreign income and tax certificates, exchange-rate data and other supporting documents.
The method used to avoid double taxation depends on the applicable treaty and the type of income.
Official source: nav.gov.hu
