Article 37 - Tax Loss Relief

A Tax Loss can be offset against the Taxable Income of subsequent Tax Periods to arrive at the Taxable Income for those subsequent Tax Periods.

The amount of Tax Loss used to reduce the Taxable Income for any subsequent Tax Period cannot exceed 75% (seventy-five percent) or any other percentage as specified in a decision issued by the Cabinet at the suggestion of the Minister of the Taxable Income for that Tax Period before any Tax Loss relief, except in circumstances that may be prescribed in a decision issued by the Cabinet at the suggestion of the Minister.

A Taxable Person cannot claim Tax Loss relief for:

1. Losses incurred before the date of commencement of Corporate Tax.

2. Losses incurred before a Person becomes a Taxable Person under this Decree-Law.

3. Losses incurred from an asset or activity the income of which is exempt, or otherwise not taken into account under this Decree-Law.

A Tax Loss carried forward to a subsequent Tax Period must be set off against the Taxable Income of that subsequent Tax Period, before any remainder can be carried forward to a further subsequent Tax Period, or any Tax Loss transferred under Article 38 of this Decree-Law can be utilised.