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7.1. General Rules

Operating losses can be carried forward for 3 years. The carry back of losses is not permitted.

Any loss on sale of a capital asset is allowed to be carried forward for a period of 3 years after the tax year in which the loss is incurred and can be offset against gains derived from the sale of such capital asset.

In case of a change in the ownership or control of a company by more than 50%, then the losses are allowed to be carried forward on the fulfilment of the following conditions:

  • the same business is continued by the company; and
  • the company does not engage in new business where its assets constitute more than 10% of its total assets