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galistvan
Community Member

Where to pay tax Philippines or Hungary

Hello,

 

I am a Hungarian citizen so I have HUN tax number. But I am living in the Philippines so I have a PH tax number as well. 

In this case if a client is from the US can I just simply choose where to pay tax in my hmeland or where I live? I rather pay tax here in PH. 

 

Thank you!

5 REPLIES 5
prestonhunter
Community Member

Istvan:

You have questions about taxes that are specific to your unique situation. You will need to do your own research and/or consult with local officials and experts. Upwork will not answer your specific tax questions.

 

It is fine if somebody in the Community Forum would like to offer you suggestions, but nobody here can answer your questions authoritatively.

martina_plaschka
Community Member


Istvan G wrote:

Hello,

 

I am a Hungarian citizen so I have HUN tax number. But I am living in the Philippines so I have a PH tax number as well. 

In this case if a client is from the US can I just simply choose where to pay tax in my hmeland or where I live? I rather pay tax here in PH. 

 

Thank you!


 I like your approach! Maybe you can convince your tax authorities to let you chose where you want to pay taxes, millions of people all over the world would rejoice and hail you their hero! 

(Hint: not the way it works)

Thanks for your answer and telling how it does not work. I know that I
can't just choose where to pay tax freely.
But the US is a third country (non EU so double taxation regulations may
apply) so in this case there is a possibility that I can pay tax here in PH
after my income from the US.




Istvan G wrote:
Thanks for your answer and telling how it does not work. I know that I
can't just choose where to pay tax freely.
But the US is a third country (non EU so double taxation regulations may
apply) so in this case there is a possibility that I can pay tax here in PH
after my income from the US.




 You should consult with a tax lawyer, this is just not the place to seek legally binding information on sensitive subjects like taxes, and upwork will not tell you what to do. 

Hello, 

 

so I was able to get the answer from a professional and posting this for future reference for other fellow Hungarians.

In case you are living in a non EU country you must inform the HU authorities that you are living abroad by filing an official form, it includes that you are earning and pay tax in a third (non EU) country. Than you can use your foreign tax number and file the necessary forms abroad and pay taxes where you really live. 

If you have foreign tax number but you live in HU you do have to pay tax after what you earn abroad. 

Also if your permanent residency is in Hungary even though you live abroad, you do have to pay social security (TB) in HU.

 Actually I am also surprised by the flexibility of the authorities but it totally makes sense that you only pay tax where you earn and live.

Thank you for the replies earlier!

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