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Practical Handbook for Companies 2021

General considerations

For tax periods commencing on or after 1 January 2015, taxpayers may offset tax losses against taxable income in subsequent tax periods without any time limit (the maximum period of 18 years established by the previous corporate income tax legislation is therefore eliminated).

For this purpose, the first twenty-first transitory provision of the LIS establishes that tax losses pending offset at the beginning of the first tax period commencing on or after 1 January 2015 may be offset in subsequent tax periods.


According to the interpretative criterion established by the Supreme Court in Rulings 1404/2021, of 30 November and 1425/2021, of 2 December, taxpayers have the right to offset tax losses against positive income in subsequent tax periods, even when the self-assessment is submitted out of time, without the decision to offset them or not constituting a tax option regulated in article 119.3 of the LGT.