KATA tax for freelancers

3POSTS

8 years ago

I have a question on the KATA tax.

I'm thinking of moving to Budapest to become a freelance copywriter. I've been doing a little digging and I found that there are a few conditions which I don't comply with.

iii. Client cannot instruct the one using KATA with regard how to execute the business activity. If the client can give instructions, then this is not KATA and you will be fined.

- basically, in my area of work, the client will Always give some instructions on how to do the job

i. You did not exclusively run your business activities alone. If this is true, then this criteria is gone.

- I work alone so that's also a no-no

Am I interpreting all of this right or is this not the case. Are there other people here who work by themselves, get instructions from clients and still are able to fall under the KATA system?

See also

The taxation system in Hungary - Guide
FACTA Tax questions. - 11 Replies
Income taxes - 16 Replies
taxes in Hugnary - 39 Replies
Registering as self-employed freelance in Hungary - 13 Replies
Validity and usage of tax number for freelancing - 3 Replies
Help with with Kata (freelance work) - 13 Replies

atomheart Serial expat

614POSTS

8 years ago

You only have to fulfill at least two of those ?5 criterias to be eligible, not all of them.

Skippy18 Member

3POSTS

8 years ago

Can you provide a source for that please? Or do you have experience with KATA yourself?

atomheart Serial expat

614POSTS

8 years ago

Quoting the law () in hungarian:

"(3) A (2) bekezd茅sben foglalt v茅lelmet akkor kell megd艖ltnek tekinteni, ha az al谩bbi k枚r眉lm茅nyek k枚z眉l egyn茅l t枚bb 尘别驳惫补濒贸蝉耻濒:
a) a kisad贸z贸 a tev茅kenys茅get nem kiz谩r贸lag szem茅lyesen v茅gezte vagy v茅gezhette;
b) a kisad贸z贸 a napt谩ri 茅vi bev茅tel茅nek legal谩bb 50 sz谩zal茅k谩t nem a 13. 搂 szerinti adatszolg谩ltat谩sra k枚teles szem茅lyt艖l szerezte;
c) a 13. 搂 szerinti adatszolg谩ltat谩sra k枚teles szem茅ly nem adhatott utas铆t谩st a tev茅kenys茅g v茅gz茅s茅nek m贸dj谩ra vonatkoz贸an;
d) a tev茅kenys茅g v茅gz茅s茅nek helye a kisad贸z贸 birtok谩ban 谩ll;
e) a tev茅kenys茅g v茅gz茅s茅hez sz眉ks茅ges eszk枚z枚ket 茅s anyagokat nem a 13. 搂 szerinti adatszolg谩ltat谩sra k枚teles szem茅ly bocs谩totta a kisad贸z贸 rendelkez茅s茅re;
f) a tev茅kenys茅g v茅gz茅s茅nek rendj茅t a kisad贸z贸 hat谩rozza meg;
g)46 a kisad贸z贸 v谩llalkoz谩s minden kisad贸z贸k茅nt bejelentett tagja, illetve a kisad贸z贸 egy茅ni v谩llalkoz贸 a napt谩ri 茅v eg茅sz茅ben a 2. 搂 8. pont a) vagy g) alpont szerint nem min艖s眉l f艖谩ll谩s煤 kisad贸z贸nak felt茅ve, hogy a kisad贸z贸 v谩llalkoz谩s napt谩ri 茅vi bev茅tel茅nek legal谩bb 50 sz谩zal茅k谩t olyan szem茅lyt艖l szerezte, akivel/amellyel a kisad贸z贸 a napt谩ri 茅vben nem 谩llt a 2. 搂 8. pont a) vagy g) alpontban eml铆tett jogviszonyok egyik茅ben sem."

But beware that there are waaay more conditions than those seven above...