In the age of globalization there is an increasing need for specialized advice on the taxation of “world citizens”.
According to an extremely exciting example, there is an executive officer, citizen of three countries, lives in a fourth state with his family, performs work relating to the executive management of the Hungarian company in Hungary and in Austria in the frame of a secondment ordered by the Austrian company. The one million dollar question here is: Where does he have to pay taxes and social security contributions, under which country’s law?
The tax residency – based on which worldwide income is taxed – shall always be the first factor to be checked for individuals taking a cross-border engagement, as the length of the engagement, the family shift surrounding the new career may affect even the basis of personal income tax relations. Moreover, in a cross-border situation not only the domestic law of the sending and the receiving countries but also their bilateral relations, i.e. the relevant treaties concluded between all the affected countries, should be investigated. The social security coverage should also be scrutinized in details on separate grounds different from the taxation.
The tax expert team of LeitnerLeitner undertake to coordinate the regulations of all countries and solve such complicated situations. Moreover, our welcome package includes carrying out of all reporting obligations to the labour law and tax authorities, preparation of the payroll and tax advance calculations as well as treatment of special benefits, bonuses, stock grants and options. At the end of the year we prepare the tax return and take care of the documents necessary for the social security exemption. We harmonize the Hungarian and the foreign tax obligations.
The experts of LeitnerLeitner can remove all burdens of administration and tax calculation in cross-border situations from our client’s shoulders. We may assist you in individual cases, and also serve your company in all fields of taxation with full scope tax and accounting advisory, representation to the tax and financial authorities, even for special procedures.