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Establishment restrictions

IRELAND


Chapter Business mobility  |  Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Immigrant Council of Ireland
There are labour market tests for Contractual services suppliers (CSS) and Independent services suppliers (ISS). However, the so-called Green Card Employment Permit, which is designed to attract highly skilled people into the labour market, does not require a labour market test. ICT professionals dominate a "shortage list" for finding foreign workers, but are not necessarily exempted from a labour market test. There are no labor market tests for intra-corporate transferees (ICT).
Coverage Horizontal
Establishment restrictions

IRELAND

Since 2000

Chapter Intellectual Property Rights  |  Sub-chapter Copyright
Directive 2001/29/EC (The Copyright Directive)

Copyright and Related Acts
In the European Union, there is no general principle for the use of copyright protected material comparable to the fair use/fair dealing principle in the US. Directive 2001/29/EC defines an optional, but exhaustive set of limitations from the author´s exclusive rights under the control of the “three-step test”. This is a clause in the Berne Convention that establishes three cumulative conditions to the limitations and exceptions of a copyright holder’s rights. The Directive has been transposed by Member States with significant freedom.

Ireland copyright law provides for fair dealing, that is a work may be used by anyone for the purposes of research or private study without the permission of the author, provided the use is conducted in a way which does not prejudice the rights of the copyright owner.
Establishment restrictions

IRELAND

Reported in 2014

Chapter Investment  |  Sub-chapter Screening of investment and acquisitions
Screening mechanisms
There is no formal screening process for foreign investment in Ireland. However, investors looking to receive government grants or assistance through one of the four state agencies responsible for promoting foreign investment in Ireland are often required to meet certain employment and investment criteria. These screening mechanisms are transparent and do not appear to impede investment, limit competition or protect domestic interests.
Coverage Foreign investors applying for financial support
Fiscal Restrictions

IRELAND

Since January 2015

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
Council Implementing Regulation (EU) No. 1042/2013 amending Implementing Regulation (EU) No. 282/2011, Mini One-Stop Shop (MOSS)
The European Regulation No. 1042/2013 amending the Council Implementing Regulation No. 282/2011, declares that from January 2015, all supplies of telecommunications, broadcasting and electronic services will be taxable at the place where the customer belongs. These include, inter alia:
- images or text, such as photos, screensavers, e-books and other digitised documents e.g. PDF files;
- music, films and games, including games of chance and gambling games, and of programmes on demand;
- online magazines website supply or web hosting services distance maintenance of programmes and equipment;
- supplies of software and software updates advertising space on a website.

Both EU and non-EU suppliers have to register for VAT purposes and comply with the relevant obligations of the Member State where the customer is established, has his/her permanent address or usually resides. This may be burdensome as there are 81 VAT rates across the 28 EU countries and the rates may vary between 3% (Luxembourg) to 27% (Hungary) across member states. Furthermore, member states impose varying thresholds at which companies must begin paying VAT, ranging from EUR 0 to EUR 60,000.

As an alternative to obtaining multiple VAT registrations in each Member State where a supplier has a customer, affected suppliers may be able to opt to account for VAT across the EU via a a web-portal in the Member State in which they are identified. Hence, the system, known as the Mini One-Stop Shop (MOSS) scheme, allows taxable persons to avoid registering in each Member State of consumption.
Coverage B2C suppliers of telecommunications, broadcasting and electronically supplied services
Trading restrictions

HUNGARY

Since 1991

Chapter Online sales and transactions  |  Sub-chapter Online sales
Act XXXIV on Gambling operations
Casinos and drawing games are not allowed. Online gambling sites can operate after an authorization by the Gambling Supervisory Department of the State Tax Authority.
Coverage Online gambling
Trading restrictions

HUNGARY

Since 2015

Chapter Online sales and transactions  |  Sub-chapter Domain name (DNS) registration requirements
Act CVIII of 2001 - Domain Registration Rules and Procedures
A .hu domain can only be applied for a citizen of the EU, a natural person domiliciled in Hungary or an established company/entity in the EU. Second level domains can, however, be applied for foreign persons or entities.
Coverage Horizontal
Trading restrictions

HUNGARY

Reported in August 2013

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
De minimis rule
The European de minimis threshold for import duties is harmonized. Goods with a value of up to 131 SDR / 150 EUR / 198 USD are exempted from customs duties. The VAT de minimis threshold is not harmonized within the EU and can vary between 10 and 22 EUR, i.e. Member States can decide on a value within this range to grant an exemption on VAT for imported goods.

According to Hungary's de minimis rule, goods with a value of up to 19 SDR / 22 EUR / 29 USD are exempted from VAT.
Coverage Horizontal
Trading restrictions

HUNGARY

Reported in 2014

Chapter Quantitative Trade Restrictions  |  Sub-chapter Local Content Requeriments for commercial market
EU Directive on Audiovisual Media Services (AVMS)
The EU Directive on Audiovisual Media Services (AVMS) covers traditional broadcasting services as well as audiovisual media services provided on-demand, including via the Internet. According to the AVMS Directive on-demand services are not subject to any explicit, strict content quota, but Article 13 imposes on Member States the obligation to ensure that on-demand service providers promote European works. The Directive has been implemented by Member States in different ways, ranging from very extensive and detailed measures to a mere reference to the general obligation to promote European works.

Hungary has implemented Article 13 by imposing on video-on-demand (VOD) providers the obligation to reserve a share of European works in their catalogue.
Coverage On-demand audiovisual services
Sources
  • Press release -Video on Demand and the Promotion of European Works -European Audiovisual Observatory publishes new IRIS Special Report

    https://rm.coe.int/1680783dc7
  • Promotion of European works in practice

    http://ec.europa.eu/digital-agenda/en/news/promotion-european-works-practice
Restrictions on data

HUNGARY

Since 2010

Chapter Content access  |  Sub-chapter Bandwidth, net neutrality
Throttling
The Body of European Regulators for Electronic Communications (BEREC) found evidence of throttling of peer-to-peer file sharing and video streaming in Hungary.
Coverage Peer-to-peer file-sharing, video streaming
Restrictions on data

HUNGARY

Since 2013

Chapter Content access  |  Sub-chapter Censorship and filtering of web content
European Court of Justice ruling - Case C-314/12 "UPC Telekabel Wien GmbH v Constantin Film Verleih GmbH and Wega
Filmproduktionsgesellschaft mbH"

Hungarian Penal Code
The European Court of Justice has interpreted in 2014 that Internet Service Providers (ISPs) may be ordered by national courts to block customer access to a copyright-infringing website. This ruling aims to limit online piracy.

The new Hungarian Penal Code, which took effect in July 2013, includes provisions based on which websites can now be blocked in cases of unlawful online content. However, there is no evidence that the law has been applied to block any online content.
Coverage Internet service providers (ISPs)

Web content
Restrictions on data

HUNGARY

Since 2001

Chapter Intermediary liability  |  Sub-chapter Lack of safe harbor for intermediary liability
Act CVIII on certain aspects of electronic commerce services and of services related to the Information Society (ECSA)
The Directive 2000/31/EC (E-Commerce Directive) is the legal basis governing the liability of Internet Services Providers (ISPs) in the EU Member States and includes a conditional safe harbor. The Directive covers any type of infringement of third-party rights, including intellectual and industrial property rights and personality rights.

The limitations on liability in the Directive apply to clearly delimited activities (mere conduit, caching and hosting) carried out by internet intermediaries, rather than to categories of service providers or types of information. While it was not considered necessary to cover hyperlinks and search engines in the Directive, the Commission has encouraged Member States to further develop legal security for Internet intermediaries.

Since not all Member States have transposed the relevant articles consistently, the national case law is divergent and leads to legal insecurity on an EU level.

Despite the almost literal transposition of Articles 12-14 of the E-commerce Directive, Hungary has adopted specific liability exemptions for search engines. The provision on search engines is to be sumsumed under the liability terms of host providers, since search engines only rank the information made available. Another difference is that in Hungary intermediary liability for hosting is restricted to damages and excludes criminal liability from the scope of the exemptions.
Coverage Internet intermediaries
Restrictions on data

HUNGARY

Since 2012

Chapter Data policies  |  Sub-chapter Administrative requirements on data privacy
Act on Informational Self Determination and Freedom of Information
Only European institutions and bodies must appoint at least one person as a Data Protection Officer. However, some Member States have imposed such requirements also for private companies.

In Hungary, financial institutions, telecommunications service providers and public utility service providers need to appoint a data protection officer.
Coverage Financial institutions, telecoms service providers and public utility service providers
Restrictions on data

HUNGARY

Since January 2004

Chapter Data policies  |  Sub-chapter Data retention
Data Retention Directive 2006/24/EC

Judgment European Court of Justice in Joined Cases C-293/12 and C-594/12 Digital Rights Ireland and Seitlinger and Others

Hungarian Act on Electronic Communications
Under the Directive on Data Retention, operators were required to retain certain categories of traffic and location data (excluding the content of those communications) for a period between six months and two years and to make them available, on request, to law enforcement authorities for the purposes of investigating, detecting and prosecuting serious crime and terrorism. On 8 April 2014, the Court of Justice of the European Union (ECJ) declared the Directive invalid. However, not all national laws which implemented the Directive have been overturned.

The Hungarian Act on Electronic Communications requires 12 months retention for all data which are not calls. Hungary legislation is still in force despite the ECJ ruling.
Coverage Telecommunication sector
Establishment restrictions

HUNGARY

Since 2007

Chapter Business mobility  |  Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Act II of 2007 on the entry and stay of third-country nationals

Decree No. 16/2010 (V. 13.) SZMM on the Authorization of the Employment of Third-Country Nationals in Hungary

Act IV of 1991 on Job Assistance and Unemployment Benefits
For contractual service suppliers (CSS) and independent service suppliers (ISS), there are labour market tests required. However, under Article 7 of Act IV of 1991 a wide list of exemptions is given.
Coverage Horizontal
Sources
Establishment restrictions

HUNGARY

Since 2007

Chapter Business mobility  |  Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Act II of 2007 on the entry and stay of third-country nationals

Decree No. 16/2010 (V. 13.) SZMM on the Authorization of the Employment of Third-Country Nationals in Hungary

Act IV of 1991 on Job Assistance and Unemployment Benefits
There are quotas that are annually delivered. However, if an interim permanent residence permit is granted to a foreign worker, he/she will receive equal treatment so that no quota, labour market tests or employment authorization is required.
Coverage Horizontal
Sources