National Tax and Customs Administration of Hungary

Taxpayer registration

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<article contentid="1775792">
<title>General information for foreign citizens</title>
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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 
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.

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.

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<article contentid="1775795">
<title>Specific rules of taxpayer registration</title>
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The taxpayer must fulfil its registration obligation prior to the commencement 
of its business activity on the territory of Hungary.

In order to be able to file for registration with the tax authority, foreign 
companies without a branch office in the territory of Hungary, i.e. with no independently operating business entity registered as a branch 
office in the Hungarian company register, must meet special conditions.

A foreign company is not required to establish a branch if

<ol>

it pursues for-profit economic activities in Hungary without establishing a branch 
office,
</li>

pursues any one of the following for-profit economic activities through a branch 
office:

<ul>

teaching and educational activities provided at education institutions or at 
higher education institutions,
</li>

performing arts-related activities,
</li>

professional sports activity,
</li>

an activity limited to the supply of domestic goods purchased by the company 
or the supply of services if such occurs without personal presence and through 
the use of a commercial card issued by it abroad,
</li>

utilisation of real property and natural resources for a consideration, the transfer, 
sale or in-kind capital contribution of a right of property value related to real 
property and natural resources.
</li>
</ul>
</li>
</ol>

Registration (application for a tax number, community tax number) is performed 
by the submission of the following documents:

<li value="0">form ‘T201’, which must be submitted in a paper-based format in 2 copies to the 
Tax Authority of first instance with territorial jurisdiction, or electronically 
via the Client Gate in one copy, </li>

<li value="0">the certified Hungarian translation of the certificate of incorporation, </li>

<li value="0">specimen signature, </li>

<li value="0">certificate from the competent tax authority with jurisdiction over the seat 
of business to the effect that the company has domestic tax residence in the given 
country, and </li>

<li value="0">if, in violation of the law, the registration obligation is fulfilled only after 
the commencement of the business activity, the starting date of the activity must 
also be provided.</li>
</ul>

The documents verifying the data provided by the tax payer can be attached to 
the form in the form of photocopies. If the form is sent electronically, the documents 
can be enclosed in a scanned format.

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<article contentid="1775794">
<title>General rules of taxpayer registration</title>
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Taxpayers shall fulfil their obligation to register with the tax authority prior 
to the commencement of pursuing their business activities on the territory of 
Hungary. As the tax number generated upon registration also serves as a VAT identification 
number, no separate registration is necessary in respect of VAT.

It is highly recommended that, using form No. ‘T34, private individuals apply 
for a tax identification code and request the issuance of a tax card prior to 
receiving any income, as in the absence of the card and/or the code the payer/employer 
must deny effecting any payment until the private individuals concerned provide 
their tax identification code. The authority in charge of data provision will 
also refuse to issue certificates verifying eligibility for tax allowances, tax 
exemption as well as for tax and other benefits until the relevant tax identification 
code is provided. The obligation to register with the tax administration can be 
fulfilled at any of the following locations:

<li value="0">if, in order to perform business activities, you need a private entrepreneur’s 
licence, by submitting an application for an entrepreneur’s licence at the competent 
Document Office, you concurrently fulfil your obligation to register with the tax authority; </li>

if, in order to perform business activities, you respectively the company represented 
by you needs registration, by submitting an application for registration to the 
competent Court of Registration, you concurrently fulfil your obligation to register with the tax authority; 
</li>

if you are allowed to carry out taxable activities without an entrepreneur’s 
ID, or if the company represented by you can carry out taxable activities without 
court registration, you must register directly with the competent tax authority, 
individuals using form the ’T101 or form companies using form ’T201; 
</li>

if you are a private individual without a tax identification code and intend 
to pursue an activity that incurs tax (other than entrepreneurial tax or VAT) 
payment liability, you shall fulfil your obligation to register with the tax authority 
by completing data sheet No. ‘T34 and submitting it to the competent tax authority; 
</li>

if you are a private individual holding a personal ID card or a private individual 
who should hold one, but you do not have a social security relationship on your 
own right or a derivative one and, as a result, you incur special contribution 
payment liability, you shall, by completing form No. ‘T1011, register with the 
competent tax authority within 15 days following the date when the payment obligation is incurred or 
when it ceases.
</li>
</ul>

Additional reporting obligations

<ul>

Taxpayers engaged in an activity whose pursuit is subject to holding an entrepreneur’s 
licence or company registration shall, within 15 days following the receipt of 
the entrepreneur’s licence or the date of company registration, in respect of 
further data, provide data directly for the tax authority. For this purpose, private 
entrepreneurs and companies must use forms No. ‘T101E and ‘T201T, respectively. 
The following data shall be provided: the place where company’s documents are 
kept unless that place, is also the taxpayer’s seat or place of residence, the 
tax identification number/code of his representative as per the applicable statutory 
regulation, the tax identification number of the legal predecessor, the tax identification 
number/code(s) of the owner(s) of the limited liability company, association or 
joint company, the mailing address of 
the private individual unless it is identical with the taxpayer’s registered office 
or business premises, activities actually pursued under Regulation 1893/2006/EC, 
in the event that a registered office facility is provided as a service, the name/designation 
and tax number of the attorney/law firm providing the service, the term of the 
agency contract concluded to provide the registered office facility, the start 
date of the provision of the registered office facility as a service and those 
bound by the agency contract concluded.
</li>

Taxpayers taking up the entrepreneur’s ID shall register their core activity 
when taking the ID up at the document office. In case of other activities carried 
out using the ID, you may choose to register them at the document office or at 
the competent tax authority. 
</li>

Companies required to be registered by the court shall register their core activity 
upon filing the court registration request at the registry court, and their other 
activities (including changes in the core activity) shall be registered directly 
with the competent tax authority.
</li>
</ul>

The general rule is that the competent tax authority for an entrepreneur with 
no legal entity status – including private entrepreneurs – is the regional tax 
authority covering the seat, or if there is none, the site, in case of a legal 
entity or other organisation, the one covering the seat, or if there is none the 
site (the place where the activities are carried out).  In case of non-resident 
individual who has no seat, place of business, permanent or temporary home address 
or place of stay within the territory of the Republic of Hungary, the Large Taxpayers 
Directorate has exclusive authority.

<ul>

All taxpayers pursuing business activities shall report any change in the data 
earlier provided within 15 days following the occurrence of the change. 
</li>

In the event that real property is acquired within the framework of an onerous 
transfer of property or through gifting, the party acquiring the property must 
fulfil his obligation of reporting. Such obligation shall be honoured by completing 
form No. B400 concurrently with the submission, to the Land Registry Office, 
of the document attesting to the acquisition of property. Notification for dutiable 
purposes, along with an application for registration in the real property register, 
must be submitted to the Land Registry Office within 30 days following the date 
of the document attesting to the acquisition of property. The party acquiring 
the property may also use the form to notify the tax administration of his eligibility 
for duty exemption or allowance. This provision applies to the acquisition of 
real property situated in the territory of Hungary and the rights of pecuniary 
value related to such real property, unless an international treaty otherwise 
stipulates. 
</li>

With the exception of the acquisition of the ownership of motor vehicles and 
trailers or rights of pecuniary value pertaining to motor vehicles and trailers, 
a legal transaction subject to duty on acquisition of property, which is not subject 
to any real property registration proceedings, must be reported by the contracting 
parties directly to the tax authority. Notification is effected by having the 
original and a duplicate of the document establishing the acquisition of property 
submitted within 30 days of commencement of the duty liability.
</li>
</ul>

A legal transaction subject to duty obligation in spite of not being documented 
may also be reported verbally.

If the ownership of motor vehicles and trailers or rights of pecuniary value 
pertaining to motor vehicles and trailers is/are acquired in the territory of 
Hungary, the duty on acquisition of property shall, prior to the registration 
of change in the ownership of the given motor vehicle or trailer, be paid to the 
duty collection account of the competent tax authority by way of a cash transfer 
order available at Document Offices, or, if such service is available, by bank 
card at the relevant Document Office, or shall be deposited in cash at the cash 
desk of the relevant Document Office.  Except the acquisition of property through 
inheritance, the document attesting to the acquisition of the above rights, and 
– in the event a motor vehicle vendor is eligible for exemption − the decision 
of the tax administration attesting to such exemption, must be presented at the 
Document Office with competence to record a change in ownership. 
</li>
</ul>

Legal consequence of failure to register with the tax authority

The most common legal consequence of the infringement of the obligation to register 
with the tax authority is default penalty imposed by the tax authority. The tax 
authority imposes default penalty

<li value="0">if the taxpayer is late in fulfilling his obligation to register with the tax 
authority or in notifying the tax authority of any change in his/its data, </li>

<li value="0">if the taxpayer completely fails to comply with his obligation to register with 
the tax authority, </li>

<li value="0">if the taxpayer carries out an activity that requires an entrepreneur’s licence 
or company registration or a taxable activity without having fulfilled his/its 
obligation to register with the tax authority.</li>
</ul>

Taxpayers who are private individuals (including private entrepreneurs) may be 
penalised up to HUF 200,000 other taxpayers up to HUF 500,000 for late performance 
of compulsory notification or data disclosure (registration, reporting changes) 
or in case the information supplied is incorrect, false or incomplete.

In the event that obligation to register with the tax administration or the obligation 
to notify the tax administration of any change fails to be honoured, the tax administration, 
upon imposing a penalty, calls upon the taxpayer to fulfil his/its obligation 
and sets a deadline for the fulfilment thereof. Twice the amount of the penalty 
previously levied is established and a new deadline shall be set if the taxpayer 
misses the deadline set in the former tax authority decision.

Tax Authority decisions on the imposition of default penalty on persons carrying 
out activities that require an entrepreneur’s license or company registration 
are disclosed by way of public announcements, i.e. they are not delivered by mail, 
and such decisions are executable as of the date of their disclosure irrespective 
of whether or not an appeal has been lodged against them.

(In addition to imposing default penalties, the tax authority may also confiscate, 
as a security, the instruments used for the activity performed without an entrepreneur’s 
license or company registration and/or the goods in stock up to the value of the 
penalty imposed.)

General information for foreign citizens2020.09.17.

Specific rules of taxpayer registration2020.09.17.

General rules of taxpayer registration2020.09.17.

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