business taxation

Tax losses


Tax losses incurred in one financial year may be carried forward and offset against taxable profits in subsequent financial years.

Tax losses incurred prior to 31 December 2016 may be carried forward indefinitely.

Tax losses incurred after 1 January 2017 may be carried forward to the following 17 years1.

The tax deferral of losses also assumes that the company keeps regular accounts and that its activity remains unchanged.


Example of application

Due to the 17-year limitation of tax losses, losses for the years 2017, 2018 and 2019 can no longer be carried forward from the respective years 2035, 2036 and 2037.


(1) Article 114 LIR