ÀÏ˾»úÎçÒ¹¸£Àû

Traditionally, hidden employment is common in Hungary, especially when labour costs are high. The principle of substance over the form applies to determining whether an employment relationship exists.

The NTCA can re-classify a self-employed service contract as an employment relationship. The recipient is liable for paying taxes as if they had been paid within employment.

Detailed guidance and court decisions delineate services from employment, in terms of their primary features. In cases of secondary characteristics, several traits must point in the same direction for characterisation to occur.

In case of secondary characteristic, several traits must show to the same direction for recharacterisation.

The NTCA is active in the exposure of hidden employment. Employers who have non-registered employees are named and shamed on the NTCA website and are classed as risky taxpayers.

Unlike reliable taxpayers, unreliable taxpayers regularly pay 150% tax penalties of the standard fines.

This blacklist can influence the selection of a business partner during due diligence or the selection of an employer by potential candidates.

Primary features of employment

The following are primary indicators that