A net operating loss may be carried forward to the taxable year following the year in which the loss is incurred. The carried forward loss shall be deducted from the tax base of the following taxable years until the cumulative loss is fully offset. The Regulations shall specify the maximum limits which may be deducted annually.

A net operating loss is the deductions allowed under this Chapter which are in excess of the taxable income for the taxable year.

To calculate the net operating loss for a natural person, only the activity's deductions and income shall be taken into consideration.

[Net operating losses from natural gas investment shall not be allowed from oil and hydrocarbons tax base. Similarly, net operating losses from oil and hydrocarbons may not be deducted from the tax base of a taxpayer engaged in both oil and hydrocarbons production and natural gas investment.] ^[20]