The losses shall be carried forward as follows :

1. If the account of any year closes on loss, such loss shall be deducted from the net income of the second year. If the net income is insufficient to cover the whole loss, the balance shall be carried forward to the following year. If any loss remains the mentioned year, it shall be carried forward to the third year. Then, the balance of loss may not be carried forward after the third year.

2. The loss shall not be carried forward in case of suspension of business upon notification by the incorporated body to the Ministry of such suspension to terminate all aspects of its business or for any reasons excluding compulsory suspension.

3. The corporate body is considered to have no operations and may not carry forward any losses if it presents a tax declaration that does not include any revenues that result from its main activity, or if its declaration only shows other revenues.

4. The periods of compulsory suspension of business shall not be counted towards the periods stated in the preceding paragraphs if the incorporated body terminates its business causing such loss for some reason beyond its control such as emergency or forceful circumstances.

5. The right of any incorporated body to carry forward the loss which was not deducted during the tax period (s) related to the business that caused such loss shall be forfeited in the following cases :

   1. Liquidation of the incorporated body

   2. Change of the legal status of the incorporated body or its expiry

   3. Merger of the incorporated body with another incorporated body