Employer of record (EoR) services are becoming increasingly popular for companies looking to expand rapidly internationally. This allows a company to enter a market and recruit workers in another country quickly, efficiently and at lower cost without setting up a subsidiary. As with any panacea, however, it is important to be careful.
While the golden visa rules are still being finalised in Hungary, similar schemes have been popular in other EU countries for years. However, once the Hungarian rules have been finalised, the Hungarian Golden Visa will be highly competitive by EU standards.
Under a law passed by Parliament yesterday, all companies with more than 50 employees will be obliged to have a whistleblowing system in place from December. Employers with 250 employees cannot wait any longer, as they will have 60 days to implement the system. The question is, of course, whether companies will see the regulation as another unnecessary administrative burden or whether it will trigger an avalanche of internal investigations.
A common solution to the chronic workforce shortage seen in the entire region nowadays is that one company provides labour to another. However, one should be careful with these agreements: depending on the circumstances, the tax authority (NAV) may reclassify these contracts, which could result in major tax expenses.
The law is constantly in flux. While many people may find this intimidating, for us it’s precisely what makes it so exciting. We’d like to share this attitude with businesspeople and managers, and with those who just have an interest in business law, in the form of a regularly updated blog that discusses the latest tax law and commercial law issues in an accessible style. Feel free to send your questions and suggestions for topics you’d like us to cover to blog@jalsovszky.com.
