This agreement came to effect from 1st January between the two countries – Deloitte, the consulting firm declared in an article of MTI. According to its provisions, private individuals, who work in the other country under secondment, are exempted from the payment of contributions in the country where they are employed. It is all based on the certificate issued by the competent authorities of the contracting states.
The duration of the exemption is maximum five years which can be extended once for an additional year. In the case of the joint request of the employer and employee, the above mentioned altogether 6-year exemption can be extended further based on the individual decision of the authorities.
The agreement must be applied to all private individuals who are or were subject to the Japanese or Hungarian legislation, as well as, it must be applied to these people’s relatives.
