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Practical Handbook for Companies 2021

Limits of offsetting negative tax bases

Tax losses which have been subject to liquidation or self-assessment may be offset against positive income in subsequent tax periods up to a limit of 70 per cent of the taxable income prior to the application of the capitalisation reserve and its offset.

According to the fifteenth additional provision of the LIS, for taxpayers whose net turnover is at least EUR 20 million during the 12 months preceding the date on which the tax period begins, the 70 per cent limit is replaced by the following:

  • 50 per cent, if the net turnover in the 12 months in question is at least EUR 20 million but less than EUR 60 million.

  • 25 per cent, if the net turnover in the 12 months in question is at least EUR 60 million.