Despite the fact that the creation of a business company involves making a profit, this is not always possible for various reasons. If this is a temporary phenomenon, there is nothing wrong with it, but if the situation repeats itself every year, then it must be approached with responsibility. The Tax Code allows you to reduce the current profit by losses of previous years, but the company must use tax accounting data, not accounting.
It is necessary
Register form developed at the enterprise
Instructions
Step 1
The taxpayer may receive losses from the performance of any transactions in the reporting tax period. These can be operations related to the sale of their own products, the purchase of fixed assets, goods, property rights or the provision of services. Even from the excess of non-operating expenses, a loss can be obtained.
Step 2
Losses of previous years can reduce the profit of future periods, but only if certain conditions are met:
Step 3
If the taxpayer received a loss in more than one tax period, then the transfer of such loss to the future is made in the order in which they were incurred. This means that you should first carry forward the losses that were received in an earlier period, and then those losses that were received in a later period.
Step 4
The carry forward of losses should not exceed a period of 10 years following the period in which these losses were incurred. Sometimes a situation arises when a taxpayer does not exercise his right to reduce profit for 10 years due to the fact that he did not have the amount of profit that is necessary to cover the loss. As soon as 10 years have passed, the taxpayer can no longer reduce the tax base.
Step 5
The aggregate amount of loss in any reporting period cannot exceed 30% of the tax base, that is, the state has set a limit on past losses that reduce the tax base of future periods. The amount of tax is not reduced due to the transfer of past losses by more than 30%, since the reduction of the tax base is carried out in the same way as the reduction of income tax.
Step 6
Loss not carried over to the next year can be carried forward in part or in whole to any year of the next 9 years. This means that if the amount of the loss of previous years is higher than the maximum size of the tax base in the year following the year when the loss was received, the taxpayer can exercise the right and reduce the taxable base of the following periods.
Step 7
The calculation of the loss reducing profit should be carried out in a special tax accounting register, the form of which can be developed at the enterprise and approved by order. There you also need to make an amount that is carried over to the future period.
