The deadline for data submission concerning the building and land tax is approaching!

In the Hungarian tax system, the majority of taxes must be determined by self-assessment (with the submission of a return). The exceptions to this are, among others, the building tax and the land tax, as these are the so-called levied type of taxes. This means that the tax obligation is not technically established by a tax return, but “officially”. However, the imposition requires the prior data submission of the taxpayers. Based on the data submission, the competent municipalities are responsible for calculating the tax liability.

It is important to note that the subject of the building and land tax is the owner of the building/land on the first day of the year and it is the owner who has to file the data submission to the competent municipality by 15 January 2022, if there has been a change that justifies it. Such a change in tax liability may be, for example, the sale of the land/building, contribution, putting the building into use or even demolishing the building. Based on the data submission, the municipality will determine the amount of tax payable (or even its cancellation) in a decision. The tax must be paid in two equal instalments, by 15 March 15 and 15 September.

It is therefore worth considering what changes took place last year regarding the ownership and other relationship of plots and buildings. Mazars is at your disposal to answer any questions and also to prepare the data submission.