Obligation to register
In case the private individual taxpayer had taxable income in Hungary, he/she must request a tax identification number from the competent tax authority using form 'T34, whereafter the tax authority shall issue a tax card. The competent tax authority in case of an individual taxpayer is the one covering the taxpayer’s permanent or temporary address, or usual place of stay. In case of a non-resident individual who has no seat, place of business, permanent or temporary home address or place of stay within the territory of Hungary, the Large Taxpayers Directorate has exclusive authority.
If the private individual taxpayer (also) pursues a regular for-profit activity, e.g. the rental of real estates, you must obtain a private entrepreneur’s ID prior to the commencement of such activity. For the details, see General rules of registration.
Obligation to file a tax return
The tax payment liability of foreign nationals is limited. It pertains exclusively to the income of Hungarian origin as per the place of the gainful activity or income that is otherwise taxable, on the basis of an international treaty or an agreement of reciprocity, in Hungary. That is, if you earn taxable income in Hungary, you have to declare such income.
Record-keeping of tax payment liability
The tax authority keeps record of the taxes to be paid and those actually paid on a tax current account. With reference to the tax current account, the tax authority sends, unless you file your tax return electronically, a statement once a year (by 31st of October) if, as of the 31st of December of the year preceding the year of sending the statement, tax overpayment or tax debt of over HUF 1,000 is established on the current account, or if the tax authority establishes late payment penalty with respect to the year preceding the year of sending the statement. The tax authority imposes late payment penalty if you are late in honouring your tax payment obligation.
Notifying the Tax Authority of changes
In the case of private individuals, the data recorded by the tax administration contains the ones displayed on the address cards issued to taxpayers by Document Offices.
Taxpayers are obliged, using form No. ‘T34, to make available the data displayed on their residence permit issued by the immigration authority (Office of Immigration and Nationality) to the Hungarian tax administration.
Taxpayers may, in order to be able to liaise with the tax administration, provide the administration with a mailing address on the above-mentioned ‘T34 form.
As private individual taxpayers not pursuing regular economic activities are not obliged to file a mailing address, no default penalty may be imposed upon them if they fail to notify the tax authority of any such change. In respect of any legal consequences related to the delivery or otherwise of official documents, in the absence of a known permanent address, the mailing address provided by the taxpayer shall always be used.
Please remember that notifying the tax administration of any change in your address is our common interest.