Gazdasági munkáltató

English translation: economic employer / OECD: real employer

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Hungarian term or phrase:Gazdasági munkáltató
English translation:economic employer / OECD: real employer
Entered by: Jilt

12:44 Nov 27, 2012
Hungarian to English translations [PRO]
Bus/Financial - Business/Commerce (general)
Hungarian term or phrase: Gazdasági munkáltató
Dear forum,

Is there an English translation for this?
See http://www.nav.gov.hu/nav/ado/szja/gazdasagi_munkaltato_kett... for a definition

Jilt
Jilt
Netherlands
Local time: 22:41
economic employer / OECD: real employer
Explanation:
As opposed to "formal employer"

Ha az integrációs teszt alapján a formális és a gazdasági értelemben vett munkáltató személye nem egyezik meg, további, a Kommentárban leírt szempontot kell figyelembe venni a 15. cikk 2. bekezdése szerinti „munkáltató” meghatározására
http://www.nav.gov.hu/nav/ado/szja/gazdasagi_munkaltato_kett...

... some domestic law definitions) between the “formal” employer and the “economic” (or, in OECD terminology, “real”) employer. The OECD Model Commentary ...
http://goo.gl/xfjyw

The OECD Commentary does not use the terms formal employer and economic employer ~ but real employer - so the Revenue's position is not crystal clear
http://www.unifr.ch/cdfpd/assets/files/publications/2002 Int...
Selected response from:

Andras Mohay (X)
Local time: 22:41
Grading comment
Thanks!
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +1economic employer / OECD: real employer
Andras Mohay (X)
4employer
Eva Blanar
4economic (vs. legal) employer
Ildiko Santana


  

Answers


2 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
employer


Explanation:
The OECD Model Agreement also uses just that term (defined in Art. 15) and actually, I never heard this "gazdasági munkáltató" earlier, in real life.

At the same time, the expression "business/employer" occurs quite often in all papers and to indicate the type of that employer, this might be a solution.

Eva Blanar
Hungary
Local time: 22:41
Specializes in field
Native speaker of: Hungarian
PRO pts in category: 72
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3 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
economic employer / OECD: real employer


Explanation:
As opposed to "formal employer"

Ha az integrációs teszt alapján a formális és a gazdasági értelemben vett munkáltató személye nem egyezik meg, további, a Kommentárban leírt szempontot kell figyelembe venni a 15. cikk 2. bekezdése szerinti „munkáltató” meghatározására
http://www.nav.gov.hu/nav/ado/szja/gazdasagi_munkaltato_kett...

... some domestic law definitions) between the “formal” employer and the “economic” (or, in OECD terminology, “real”) employer. The OECD Model Commentary ...
http://goo.gl/xfjyw

The OECD Commentary does not use the terms formal employer and economic employer ~ but real employer - so the Revenue's position is not crystal clear
http://www.unifr.ch/cdfpd/assets/files/publications/2002 Int...


Andras Mohay (X)
Local time: 22:41
Works in field
Native speaker of: Native in HungarianHungarian
PRO pts in category: 16
Grading comment
Thanks!

Peer comments on this answer (and responses from the answerer)
agree  Eva Blanar: I like the "real employer" - actually, for formal employer, we have a word of our own: munkáltató, and real employer basically is munkaadó (the one who puts own money into the story)
2 days 22 hrs
  -> Thank you (also for the fine explanation about 'munkáltató' vs 'munkaadó')
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6 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
economic (vs. legal) employer


Explanation:
See the relevant source,
OECD Model Tax Convention on Income and on Capital:
http://tinyurl.com/d5ybqw5
Chapter V: Methods for elimination of double taxation
Browsable full version:
http://tinyurl.com/ca683h5
"...the position of an investor in a CIV differs substantially, as a legal and economic matter..."
"...Contracting States will want to consider the economic characteristics..."

See article specifically addressing the differentiation between economic employer and legal employer:
"With OECD's Proposed Changes to Model Treaty Commentary on Article 15, Are They about To Open Pandora's Box?":
http://www.us.kpmg.com/microsite/tax/ies/tea/summer2007/arti...
"Potential for Conflicting Interpretations
In light of the above, in cases of "international hiring out of labor," the word "employer" should be interpreted as the employee's "economic employer" rather than legal employer. (The expression "legal employer" is used in this article to mean the company with which the employee has a formal employment contract.)
However, more and more countries are seeking to interpret the word "employer" this way even when "international hiring out of labor," or any other sort of "abuse," is NOT in point. This has the potential for conflicts of treaty interpretation, mainly where one country adopts the "economic employer" approach and the other one does not, but also between two countries which take the "economic employer" approach but have different tests as to what is an "economic employer.""

Some explanation can be found in this Hungarian (+German) document on the subject:
"A német-és magyarországi társasági- valamint személyi jövedelemadóztatás egyes gyakorlati aspektusai":
http://tinyurl.com/d85v7bz
"...A Modellegyezmény tehát elkülöníti a jogi és a gazdasági értelemben vett munkáltató fogalmát. Ennek megfelelően munkáltatói funkció a fogadónál, akkor adózás Magyarországon."

Ildiko Santana
United States
Local time: 14:41
Specializes in field
Native speaker of: Native in HungarianHungarian, Native in EnglishEnglish
PRO pts in category: 92
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