Business valuation and the wealth tax
The draft would value unlisted shareholdings under specific rules, so book value alone may not reflect the tax base.
Based on the supplied draft. The rules described have not been verified as effective law; the final provisions may change.
Valuation factors
Under sections 12–19 and Annex I of the draft, both equity and an earnings-based value could play a role.
- equity and hidden reserves
- earning capacity
- specific rules for holding structures
- treatment of minority interests
Why prepare early?
A well-documented, consistent valuation reduces uncertainty and can be decisive in any later dispute.
Equity and earnings value
The main Annex I rule would weight equity by one third and earnings value by two thirds, multiplied by the ownership share. Earnings value would use the average after-tax result of the last three completed financial years and a 15% capitalisation rate; a negative average would give zero earnings value. Holding companies, newly established companies, minority interests and consolidated accounts would have separate rules.
Independent valuer: specific requirements
The expert route under section 12(4)–(7) would require legal and economic independence, qualifying valuation revenue in each of the preceding three years and documented use of at least two methods. We do not claim that the firm itself meets those specific revenue conditions; arrangements for a qualifying independent valuer must be discussed where needed.
Legal and financial perspectives combined
We assess valuation questions together with the corporate background and your ownership goals. We assist clients throughout Hungary, both in person and online.
Six-person boutique team. Personal responsibility. Attorney confidentiality.
Our established multilingual team combines a designated matter lead with a coordinated service and legal project management to review complex wealth. Information learned in the course of legal practice is handled under the rules on attorney confidentiality.
Meet our firmFrequently asked questions
Would company equity alone suffice?
Not in every case. The main Annex I rule would combine equity and earnings value, with exceptions for holding and newly established companies, among others.
Could any evaluator carry out the special expert valuation?
No. Section 12(4)–(7) specifies independence, revenue and methodological requirements. Involving a qualifying independent evaluator must be discussed separately where needed.
Open draft (Hungarian)