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7.1. General Rules

Losses (except arising from fraud or misappropriations) can be carried forward for 4 years. No carry back is allowed. Losses attributable to depreciation booked in loss years (so-called ARD) were available for carry-forward indefinitely.  However, the Finance Law 2020 rescinded the indefinite carry-forward for ARDs and replaced it by a maximum period of 10 years.

Effective 1 January 2021, credit institutions and State portfolio companies undergoing restructuring can carry forward losses for up to 6 years (instead of the standard 4 years).

COVID-19 Emergency Measures

Companies directly affected by the COVID-19 pandemic are allowed to carry forward losses of the financial year 2021 for one additional year.