If you are a business owner, you need to know exactly how much your ownership interest is worth. Under the proposed wealth tax legislation, determining this value would become an annual requirement. If your company does not have a stock market price, the draft law provides a specific formula for calculating its value. This formula is currently at the center of professional debate. To help you, we have created a calculator that can provide an initial estimate in just a few minutes.

Wealth Tax in Brief

The proposal has not yet entered into force, and the final rules may differ. According to the current draft:

• The law would enter into force on 15 December 2026, and the tax would apply to assets held on the last day of the tax year.
• The tax would be payable on the portion of wealth exceeding HUF 1 billion.
• The tax rate would be 1%, increasing to 1.5% for the portion exceeding HUF 100 billion.
• The value of a shareholding in a company would be determined using a specific statutory formula.

Why Is Company Value Such a Sensitive Issue?

For many entrepreneurs, their shareholding in a company is their largest asset. Yet no one can determine its exact value because it has no market price. The tax, however, must be paid in cash, while the value of the company is merely a calculated figure. Therefore, it matters greatly how accurately the formula reflects economic reality.

How Does the Draft Wealth Tax Calculate Company Value?

The value of a company is calculated as the weighted average of its equity and earnings value, with earnings value receiving double weight. The earnings value is derived from the average after-tax profit of the last three years, divided by 15%.

Value = (Equity + 2 × Earnings Value) ÷ 3 × Your Ownership Percentage

Example

The company has equity of HUF 100 million, and its average annual after-tax profit over the last three years is HUF 30 million.

The earnings value is:

30 ÷ 0.15 = HUF 200 million

The company value is therefore:

(100 + 2 × 200) ÷ 3 = approximately HUF 167 million

If you own 40% of the company, your share would be worth HUF 66.7 million.

For a minority shareholding, the draft proposal allows a 25% discount, reducing the value to approximately HUF 50 million.

Special rules also apply to holding companies, newly established businesses, and dividends. If the statutory formula is not suitable, for example because there is no finalized financial statement or because the shareholding carries special rights, the valuation of an independent business appraiser may be used.

What Do Experts Criticize?

• One formula for everyone. The same 15% rate applies to both manufacturing companies and service providers.
• Three-year average. An exceptionally good year may distort the valuation for three years.
• The HUF 500 million threshold. If equity exceeds HUF 500 million, hidden reserves must also be considered and reviewed by an auditor.
• Tax on a calculated value. Company value is not cash, yet the tax must still be paid.

Supporters of the proposal argue that the formula is simple, can be derived from financial statements, and eliminates the need for a separate valuation every year. The question is how much inaccuracy this simplicity may introduce into the tax calculation.

What Should You Do Now?

• Prepare the financial statements for the last three years.
• Check whether the company’s equity is below or above the HUF 500 million threshold.
• Review your dividend policy, as dividends approved after the balance sheet date reduce equity for valuation purposes.

If you would like to discuss your company’s situation or have the calculator’s result reviewed, please contact us. We would be pleased to assist you.

This article is based on the text of the proposed 2026 Wealth Tax Act. It is intended for general informational purposes only and does not constitute tax or legal advice.