January 5th, 2010
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Settlement in long dispute over social taxes on wages earned outside of Hungary

The three-year dispute between tax authority APEH and the Construction Industry Company Association (Évosz) has ended with APEH issuing a statement that in Hungary no social contributions should be paid on wages paid to Hungarian employees working abroad for Hungarian companies, but only on wages paid in Hungary.

That had been the standpoint of Évosz throughout the dispute, and the association asked the authority to issue a statement on the matter.

“The statement will mean the survival of the several hundred construction companies who opted to go to foreign markets instead of staying in the collapsing domestic one,” Évosz deputy chairman László Koji said.

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