There is a new registration obligation for companies with real estate holdings as of 1st January 2010. The first registration shall be made on the basis of the data of financial statements 2010, for businesses working with a financial year different from the calendar year on the basis of the financial statements available on 31st May 2011 not later than by 31st August 2011. On the basis of declarations, the state tax authority publishes the list of companies with real estate holdings on its website by 30th September 2011.

In harmony with government's intention and for ensuring state budget revenues, as a novelty in the Act on Rules of Taxation and in corporate taxation, domestic owners have a new registration obligation and particular companies resident abroad have a new tax payment liability as of 1^st January 2010.

The term "company with real estate holdings" is included in the rules of taxation and laws about corporate tax as of 1^st January 2010. However, it will be practically applied first on the basis of the data of the financial statements 2010. Companies with a financial year identical with the calendar year had to publish their financial statements 2010 by 30^th May 2011. Thus, the data are available for companies after this date only. Companies working with a financial year different from the calendar year have to consider the data of their last financial statements available on 31^st May 2011.

Registration is performed simply by filling in the relevant field of the form no. 11T201T and submitting the form to the state tax authority by 31^st August. However, also the details of regulation should be considered.

The state tax authority publishes the list of companies with real estate holdings on its website by 30^th August every year.

The term "company with real estate holdings" is specified in the Act on Rules of Taxation among definitions:
Tax payer is regarded as a company with real estate holdings if
1. in its financial statements or together with its affiliated companies (referred to as group), value of real estates in inland within total market value of assets stated in the individual financial statements on the balance sheet key date is more than 75%, and
2. its member or any group member is of foreign residency at least on one single day of the tax year in a state with which Republic of Hungary has no double taxation agreement or the agreement allows taxation of foreign exchange profit in Hungary.

In the case of foreign company groups, the Hungarian subsidiary has typically insufficient information about precise ownership structure of the individual group members. Thus, the Hungarian subsidiary cannot decide whether the conditions are met or not. To avoid such cases, the law assumes the situation more unfavourable for the tax payer, i.e. assumes that there is an owner in the group that does not fulfil the conditions, and the company with real estate holding has to register. The tax payer has to inform by 31^st July of the calendar year all the affiliated companies of the group about the data necessary for identifying the real estate ratio.

However, it should be precisely considered which tax payer fulfils the above mentioned conditions because the owner has to pay the corporate tax with the usual tax rate for revenues originating from selling the shareholding in the company with real estate holdings. There is an essential aspect when considering conditions that the company with real estate holdings has unlimited and joint and several liability for tax not paid by the owner but levied by the state tax authority.