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May 15, 2026

Article 69 establishes the general rule for utilizing business losses. A taxpayer who incurs a loss in any tax year may carry that loss forward to the following year and deduct it from the taxable income of that and subsequent years until the loss is fully set off. In cases where losses are incurred over multiple years, they must be deducted in chronological order, starting with the earliest year's loss. This provision allows businesses to smooth their tax liability over time, recognizing that losses are an inherent part of commercial activity.

Part 3 - Chargeability to Tax

Chapter 2 - Rules for Deduction from the Gross Income

Section 5 - Provisions Concerning Deduction and Carrying Forward of Losses

Article 69

[GTL Notes: Carry Forward of Losses]

The losses incurred for any tax year of the taxpayer shall be carried forward to the following tax year and deducted from the taxable income for that year and the subsequent years until the entire loss is set off. In case the loss is incurred for more than one tax year, the deduction of loss shall commence from the earliest tax year.