ASSET AND COMPANY VALUATION
LAVECO Kft. recommends that potentially affected individuals begin reviewing their asset positions and collecting the necessary supporting documentation even before the legislation is finally adopted.
ASSET AND COMPANY VALUATION
One of the most complex aspects of fulfilling any potential wealth tax filing obligations may be identifying the assets that must be taken into account and ensuring that they are valued in accordance with the applicable legal requirements.
This is particularly relevant to real estate, shares in privately held companies, foreign investments and more complex ownership structures.
A proper valuation cannot simply be based on the book value or original purchase price of the assets. The proposed legislation establishes specific valuation methods and conditions for different categories of assets.
Through its network of professional partners, LAVECO Ltd. can assist in engaging suitably qualified and experienced accountants, auditors, tax advisers and valuation specialists who can provide the relevant services and professional expertise for the valuation of particular asset classes.
We consider the valuation of privately held companies to be particularly important, as the market value of a business, its book value and the value calculated in accordance with the methodology prescribed by the proposed legislation may differ significantly.
Clear Allocation of Professional Responsibility and Contractual Relationships
In this process, LAVECO Ltd. primarily assumes a coordination and intermediary role.
Contracts for valuation, accounting, auditing and tax advisory services are entered into directly between the client and the relevant professional or service provider.
The respective service provider remains responsible for the professional valuations, tax advice and tax returns prepared, in accordance with the contract concluded with the client and the applicable legislation.
Why Is It Advisable to Start Preparing Now?
If the wealth tax is introduced, affected individuals should expect more than a one-off administrative exercise. The proposal envisages annual tax filing and payment obligations, which may require regular assessments and documentation of their assets.
To prepare adequately, it is advisable to review the following well before the first tax return is due:
- Real estate and other assets owned by the individual.
- Direct and indirect corporate shareholdings.
- Domestic and foreign investments.
- Wealth management arrangements and other ownership structures.
- Liabilities that may be taken into account for tax purposes.
- Applicable exemptions and relevant international tax treaties.
LAVECO Ltd. recommends that potentially affected individuals begin reviewing their asset positions and collecting the necessary supporting documentation even before the legislation is finally adopted.
For the preparation of the first tax return, it may be particularly advisable to engage an independent professional with the appropriate qualifications and practical experience.
We also recommend an independent professional review to clients who already have their own accountant, lawyer or tax adviser. A second professional opinion, or an independent double-check, can help identify potential omissions, inconsistencies and valuation risks.
CONTACT US
Contact us now to get more information about our services
33/A Raday street, 1092 Budapest, Hungary
Monday to Thursday: 08:30 – 17:00
Friday: 08:30 – 16:00
+36 (1) 456-72-00
hungary[at]laveco.com