For corporate tax, losses can be carried forward for five years, and any loss not used in time is forfeited. Loss carryforwards give rise to a deferred tax asset, whose recognition depends on expected future taxable profit.
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Related terms
Corporate income taxThe tax levied on the earnings of capital companies, cooperatives and other corporate entities.Deferred taxTax payable or recoverable in future periods, calculated on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their tax bases.Tax-neutral mergers and divisionsCarrying out mergers, full and partial divisions and share exchanges that meet statutory conditions at book values without triggering tax.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Advance tax rulingA written explanation issued by the tax administration upon a taxpayer's written request about its own tax position or matters it considers unclear.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.
Last updated: November 8, 2026 · This definition is for general information only.