Work activity that the U.S. considers self-employment under U.S. Social Security law
often qualifies as self-employment under Hungarian law. Under the agreement, a self-employed
worker is generally subject to only the laws of the country in which the worker performs
the work. However, the agreement provides for an exception if a person transfers self-employment
activity from one country to the other for five years or less. In this case, the self-employment
activity remains subject to the social security laws of the country from which the
worker transferred the activity and exempt from social security coverage and taxation
in the other country.