Self-employment requirements

lisztferenc wrote:

If I just pay my monthly tax, pay my health care (have the card, have resident's card for BP), they will just leave me alone... right?

Right.

Until they change the law. Which, of course, happens in Hungary about every other day.

Having a good accountant is the key. They are suppose to keep current with the legal tax and business issues and stand by you if you are audited. If you have a good accountant, then let them worry about it. Just keep yourself informed and in touch with your accountant to make sure you are in current compliance.

(But if you have a lousy accountant, then you may need to worry).

Hello there,
Thank you for your response, which I found comforting.  May I courteously ask if you are knowledgeable at all on such matters so that I may take your response with a little more oomph?

If it is as simple as: it doesn't matter really about this official professional qualification, they won't come knocking if you pay taxes on time and show you make money, then I will immediately modify my business model.

I wait for the response of my accountant still and will report back.
Thanks for your comment.
LF.

In Hungary I have dealt mostly with KFTs. But if you informed your accountant of your status (your degrees and or certificate) and your accountant was transparent with the tax office and or business court when setting up your sole proprietor/single member company (i.e. KATA) regarding same (i.e. your accountant was competent), and if the tax office and or court approved your business formation given the available paperwork and your current degrees and certificates, then I would (personally) say you can probably sleep easy at night (until the government changes the law).

The key issue is getting everything you can in writing and officially stamped -- often difficult in Hungary**.

So if you pay your taxes and can present an officially stamped document on an issue of inquiry in Hungary, you may find any questions/issues almost always vanish (unless they change the law -- such as the current land ownership spat Hungary is currently having with the EU -- but those things you can not predict or control).

** I am still "in process" with one specific topic for over 4 years, but I hope to finally have the final approval and official stamped documents from three different government offices this month.... Welcome to Hungary.

Hi,
Thank you for your comment; it's helped.  I've progressed further and discussed with others and I have modified my business model entirely.  Now I am merely a private English teacher, rather than doing what I was doing which made me fall into the 'language school' bracket - herein lied the problem.

Thanks once again!
LF

Hi LF,
This is a very complex topic and very little depends on accountant. Hungary voted last June a new adult education law in force since September and having practical rules annexed in nov-dec 2013. According to the new laws pretty much everone is "illegal" (companies and individuals with KATA) if they haven't got accreditation and all kind of administrative things. As language school it is difficult/risky to higher foreigners even if they have 5years MA for teaching. The law is not about the taxes and no communication was done btw Ministry of Economy, Tax Office and probably either Min. of Education. Companies working in the area can't get a written statement from Ministery about who does this refer too, so I doubt that an accountant who is uptodate in best case with tax laws will be able to clarify.
As many companies, language schools do courses from European or state funds they have strict criteria regarding the teachers education as well. But the key is to find people, companies, language schools who want you. 250-300k per month? Nasty business, however I think you have very high target knowing the Budapest market:( Good luck!