Losses carried forward can be utilized until 2030 instead of 2025

21 February 2019


The draft proposal approved in December 2018 on Act CXCV of 2011 on public finance and the amendment of other laws modifies the time limit of using the loss carried forward generated before the 1st of January 2015.

The legislation on losses carried forward generated between 2004 and the last day of the tax year beginning in 2014 did not contain any time restriction.  In the view of the 5 year limit on the losses carried forward generated not earlier than 1st of January 2015, the legislator in a transitional provision regulated that losses generated until the last day of the tax year beginning  in 2014 could be utilized by the Companies in the tax year including 31 December 2025, at the latest. The amendment extends the opportunity to taxpayers to use the available losses carried forward, which were generated until the financial year started in 2014 (and not utilised before) as a deduction from the pre-tax profit until the financial year including 31 December 2030.

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