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The Hungarian National Tax and Customs Administration (NAV) regularly publishes on its website the names, registered addresses, tax identification numbers, and for individuals, tax identification codes, of employers found to have failed to declare their employees’ employment relationships. These listings follow final and enforceable administrative or court rulings.
According to NAV, the published data also include the date of the ruling and the date when it became enforceable. The authorities remove these listings two years after publication.
Since a legal amendment came into force on September 12, 2023, it is no longer required that the ruling be enforceable for publication. It is sufficient that the ruling is final. This means employers who fail to register their employees are publicly named sooner than before.
The lists of offenders are available on the NAV website and are categorized based on whether the rulings were issued before or after the legislative change.
NAV also publishes a separate list indicating which of these employers do not meet the criteria of “orderly labor relations.” This designation applies to employers who, within the two years prior to applying for budgetary support, have been fined with a final and enforceable ruling related to failure to report employment relationships.
The purpose of these disclosures is to promote compliance with employment regulations and increase transparency. They also serve as a tool for other government bodies when assessing applications for public funding or contracts.
Employers included on these lists face reputational risks as well as potential limitations in accessing state support.
Legal Basis:
- Act CL of 2017 on the Rules of Taxation (Art.) § 265
- Government Decree 115/2021 (III.10) § 20 (1) a)
Practical Takeaways for Employers and Tax Professionals:
- Employers must ensure timely and accurate registration of all employment relationships to avoid public listing and related penalties.
- The threshold for public disclosure has lowered; final rulings now trigger earlier publication without the need for enforceability.
- Being listed may disqualify companies from certain public benefits or contracts due to non-compliance with labor regulations.
- Regular audits and compliance checks are advisable to mitigate risks associated with undeclared employment.
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