Losses can be carried forward and can be offset with future profits for a five-year period.
Losses considered to be of Argentine source can be offset only with profits considered to be of Argentine source. Losses considered to be of foreign source can only be offset of foreign source profits.
Company tax losses can be carried forward indefinitely, subject to satisfying certain loss utilization tests.
Tax losses (resulting from operating revenues) may be carried forward for an indefinite period of time and may be offset against both trading income and capital gain. However, for corporations only 75% of current income may be offset against tax losses brought forward; thus 25% of current income is invariably subject to tax. This limitation does not apply to individuals. Excess tax losses can still be carried forward. Loss carry backs are not permitted.
Losses may be carried forward indefinitely, but their use in a given tax year is limited to €1,000,000 plus 70% of the taxable basis in excess of €1,000,000. Any carried forward tax losses that cannot be used due to this limitation may be further carried forward indefinitely. The remaining 30% of the taxable basis in excess of €1 million will be subject to normal corporate income tax rates.
Under the actual profits method, net operating losses generated in a given period/year can be used to offset up to 30% of the taxable income the accrued on the subsequent period/year.
Non-capital losses may generally be carried forward 20 taxation years and back three taxation years, subject to certain loss limitation rules. Net capital losses may generally be carried forward indefinitely and back three taxation years, subject to certain loss limitation rules.
Loss can be carried forward for 5 years in general, and may be extended in limited scenarios.
Utilization of tax losses depends whether or not such losses were obtained before 2017:
- Tax losses generated before 2017 can be offset with ordinary taxable income obtained in any of the subsequent fiscal years
- Tax losses generated as of 2017 can only be offset with ordinary taxable income obtained in the twelve subsequent fiscal years
Carry-back of losses is not permitted. Capital losses cannot be offset against ordinary income.
Tax losses can be carried forward up to 10 years. Changes in the ownership of a company with tax losses carried forward results in forfeiture of tax losses, but the Finnish tax authorities may upon application grant an exception to utilize the losses.
Operating losses can be carried forward without time limitation but with a utilization cap per financial year of €1 million plus 50% of the taxable profit of the current financial year. Losses can be carried back only for the previous financial year, with a €1 million cap.
Carry-forward: Losses may be carried forward indefinitely.
Carry-back: Losses up to an amount of €1 million can be offset against the profits of the preceding year. Losses for trade tax purposes cannot be carried back.
Minimum taxation: 40% of the income exceeding €1 million cannot be sheltered by tax loss carry-forwards, but instead is subject to taxation at regular rates.
Hong Kong, SAR
Losses attributable to the operation of the trade, profession or business carried on in Hong Kong can be carried forward indefinitely to offset against future assessable profits until fully utilized. Where a taxpayer carries on more than one trade, profession or business in Hong Kong, the losses in one can be utilized against the profits of the other.
However, losses cannot be carried back to offset against assessable profits in prior basis periods.
Business or Profession losses may be carried forward eight years. However, unabsorbed depreciation may be carried forward indefinitely. Short-term loss may be set off against both short term and long term capital gain. However, long-term loss may be set off only against long term gain.
Relief for trading losses is available by way of set-off against all other relevant trading income of the company in the same period and of the immediately preceding accounting period of equal length. Relevant trading losses can also be used to shelter foreign dividends which the company elects to tax at 12.5%. Any remaining trading losses can be set-off against all other income and profits of the company in the accounting period and in the immediately preceding accounting period of equal length on a value basis. Unused trading losses may be carried forward indefinitely for offset against future income of the same trade.
A member of a group of companies may surrender current year trading losses to another group member. A number of conditions must be met for group relief to be available (corresponding accounting period, 75% subsidiaries, tax resident in a Member State of the EU, etc).
There are different utilization rules for current and carried forward net operating losses and capital losses. Both capital losses and net operating losses which were not utilized in the current tax year may be carried forward indefinitely. Carry back of losses is not available.
Tax loss can be carried forward without any time limitation, but can be used to offset only up to 80% of taxable income. Tax losses incurred in the first three years of activities can be used to entirely offset subsequent years' taxable income. Tax losses cannot be carried back.
Net operating losses may be carried forward ten years. Only small and medium-sized enterprises with capital of JPY 100 million or less and whose parent's capital is less than JPY 500 million can carry back its losses to the preceding year. Also, except for small and medium-sized enterprises, the utilization of the net operating loss carried forward is subject to the following caps: 80% of the taxable income for the fiscal years beginning on or after 1 April 2012; 65% for the fiscal year beginning on or after 1 April 2015; 60% for the fiscal year beginning on or after 1 April 2016; 55% for the fiscal year beginning on or after 1 April 2017; and 50% for the fiscal years beginning on or after 1 April 2018.
Carry-forward: Losses generated from January 1, 2017 can be carried forward for a maximum period of 17 years.
Point of interest: Losses generated before this date are not subject to these limitations and may be carried forward indefinitely.
Carry-back: Not applicable for this jurisdiction.
Net operating losses can be carried forward ten years, but no carryback is allowed.
Tax losses can be carried six years forward and one year back. Grandfathering treatment permits a nine year carry forward for tax losses realized prior to 2019. Significant changes of ownership of a company may result in the tax losses being restricted.
Unused losses may be carried forward without limit. Disallowed interest deductions (see Taxable income) can be carried forward for 10 years.
Losses may be carried forward for 5 years. The deduction may not exceed 50% of loss incurred in a given year but, in addition to the 50% limit, PLN 5 million loss may be settled in one of 5 years. Losses cannot be carried back. Losses incurred from a given source (capital gain or other sources) may be settled only with income from that source.
Net operating losses can be carried forward 5 years, but can be used to offset only 70% of the taxable income.
The time limitation applicable to agricultural, commercial or industrial entities qualified as micro, small and medium-sized enterprises is 12 years.
Fiscal losses can be carried forward for seven consecutive years and offset against future profits.
Russian tax rules allow tax losses to be carried forward for an unlimited period but, for the financial years 2017 - 2020, the taxpayer can reduce the tax base by such losses to the amount of not more than 50%.
Losses from the sale of securities can be credited only against future income from the sale of the same type of securities. Losses from the disposal of fixed assets are recognised evenly over the remaining useful life of the assets.
Unabsorbed losses, capital allowances and donations may be:
- Carried forward indefinitely (except for donations which can only be carried forward for up to 5 years), provided that the shareholding composition of the shareholders and their respective shareholdings of the ultimate holding company remain substantially (ie, 50% or more) the same on the relevant dates. For utilization of unabsorbed capital allowances, there is an additional condition that the company must continue to carry on the same trade
- Carried back for set-off against income earned in the immediate preceding year, also subject to the substantial shareholders' test being met. The amount that can be carried back is capped at S$100,000. The amount that can be carried back is capped at S$100,000.
- Transferred to eligible related companies under the group relief system
Net operating losses and assessed losses of a corporate can generally be carried forward indefinitely. However, a corporate will lose its right to carry forward an assessed loss to a subsequent year of assessment if it fails to carry on a trade during a specific year of assessment.
Net operating losses can be carried forward 10 years.
Net operating losses (NOLs) can be carried forward with no time limit. However, the following limitations apply:
- Companies with net turnover in the previous fiscal year of less than €20 million can only offset NOLs up to the limit of 70% of the net taxable income
- Companies with net turnover in the previous fiscal year between €20 million and €60 million can only offset NOLs up to the limit of 50% of the net taxable income, and
- Companies with net turnover in the previous fiscal year of more than €60 million can only offset NOLs up to the limit of 25% of the net taxable income
Nevertheless, NOLs up to €1 million can be offset with no limit.
Tax losses can be carried forward indefinitely. Changes in the ownership of a company with tax losses carried forward may result in the tax losses being permanently or temporarily restricted.
Unused losses can be carried forward seven years for corporate income tax purposes.
Tax losses (for Taiwan companies and Taiwan branch offices of foreign companies) may be carried forward for 10 years if such company meets certain conditions. Losses may not be carried back.
Net operating losses can be carried forward for 5 years but cannot be carried back with the exception of the company's liquidation.
Declared losses may be carried forward without limitations.
United Arab Emirates
Branches of foreign banks are able to carry forward losses for a limited number of years, depending on the Emirate of establishment. For other companies, loss utilization is not applicable in the UAE.
Trading losses can be carried forward indefinitely and can be carried back 1 year (or in certain limited circumstances up to 3 years). Trading losses can also be surrendered between group companies (provided, in the case of losses arising prior to April 2017, that they are utilized in the year in which they arose). However the use of carried forward trading losses is limited to the first £5 million of taxable profit (per group) plus 50% of profits in excess of £5 million.
Net operating losses arising in tax years beginning before 2018 may offset 100% of taxable income, and may be carried back two years or forward 20 years. Net operating losses arising in tax years beginning 2018 or later may offset up to 80% of taxable income in the year applied, with excess losses carried forward indefinitely.
Any assessed loss may be carried forward for a maximum of six years from the year of assessment in which the assessed loss was first incurred. The only exemption to this general rule is assessed losses incurred from mining operations, which may be carried forward for an indefinite period.