Pursuant to Subsection 10 of Section 3 of Act CXVII of 1995 on Personal Income Tax (hereinafter: the PIT Act), “travel for the purpose of obtaining personal income, performing a task related to the activities of the payer (with the exception of visiting the place of work, the registered office or the site from the place of residence) including, in particular, travel for the purpose of secondment or work with another employer within the framework of an employment relationship other than the employment contract…” shall be considered as official, business travel.
We can also read the definition of economic activity in the PIT Act, according to which “any commercial, permanent or regular activity is considered as an economic activity if it is aimed at or results in obtaining consideration and is carried out in an independent form”.
Not only the PIT Act but also Act CXXVII of 2007 on value added tax (hereinafter: the VAT Act) specifies what is considered as economic activity, Section 6 (1) of which defines in the same way as the PIT Act what can be considered an economic activity. According to Section 6 (2) of the VAT Act, “economic activities include, in particular, industrial, agricultural and commercial activities aimed at production, distribution, as well as other service activities, including activities carried out as intellectual freelancers”.
Based on the above definitions, when assessing the business or economic nature of the travel, it is appropriate to consider whether the travel is for or related to the business, profit or income of the economic operator or other entity.
It is advisable to use the officially published certificate template
In case of business or economic nature of the travel, the Regulation does not contain detailed rules on the details of issuing the certificate, but for work and other business, economic travel (e.g. meeting, participating in exhibitions, purchasing raw materials, etc.) it is worthwhile for travellers to to request a certificate as a private document with conclusive evidence (duly signed by the representative of the company) from their employers or the legal entity for which the trip is made. In order for the document to be suitable for proving the business or economic purpose of the travel, the specific reason (purpose) for entry must also be indicated.
In the case of business and economic travel, it is advisable for all travellers and companies, as well as other legal entities, to pay careful attention to whether the travel is truly business or economic in nature and, if so, to pay special attention to the certificate required by the Regulation.In order to facilitate this, and for the purpose of issuing the certificate, those concerned have the option to download the official document template, which can be DOWNLOADED HERE, and which will soon be available also on the police.hu website.
The regulation provides for transit passengers as follows:
Non-Hungarian citizens arriving from abroad may enter the territory of Hungary as passengers for the purpose of transit if they submit to a medical examination upon entry and the medical examination does not establish the suspicion of infection.