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