Tax Loss Relief

What is Tax Loss?
If a Taxable Person’s deductible expenditure exceeds its income that is subject to Corporate Tax, they will have negative Taxable Income i.e. Tax Loss

What is the Relief?
Tax Loss can be used to reduce Taxable Income in future Tax Periods to a maximum of 75% of Taxable Income of each subsequent year

Tax Losses not eligible for relief
Tax Losses incurred:
• Before commencement of Corporate Tax
• Before a Person becomes a Taxable Person
• From assets or activities which generate Exempt income
Note: Benefit of Tax Loss Relief cannot be claimed for Tax Periods when Small Business Relief is elected

Unutilised Tax Loss can be carried forward indefinitely if:
• 50% or higher ownership interest in Taxable Person is constant from the year when Tax Loss arises to the year of offset; or
• Taxable Person has continued same or similar Business

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