The Belastingdienst (Dutch Revenue Service) sees no insurmountable problems in the upcoming measures for tax-deductible losses in corporation tax. In future, a bv will be allowed to carry forward a loss in a financial year without limitation. As far as the tax authorities are concerned, the measures can be executed as from 2022. Now, a bv can offset a loss up to one year back (the ‘carry back’) in a financial year and up to six financial years ahead (the ‘carry forward’). The term of six financial years ahead will cease to apply as from 2022. The carry-forward of losses will thus be unlimited in respect of time. But at the same time there will also be a limitation for bvs with large losses. A loss of € 1 million in one financial year can always be set off, but if the bv exceeds that amount it cannot include more than 50% of its losses. If there is any tax-deductible loss left after that, the bv may carry it forward to a next financial year.
The €1 million limit will also apply to the carry-back of losses. For this, the term will remain set at one year. The Belastingdienst always carries out an ‘implementation test’ for this kind of measure. They examine, for example, if the proposal can be integrated into their systems, what it will costs and if the scheme can be enforced. The final judgement is that the scheme can be implemented on January 1, 2022. However, the tax authorities do comment that the measure places a considerable burden on its organisation. This means that the legislator will have to accept that in the next few years there will be fewer opportunities ‘for legislation with automation consequences’ within the corporation or dividend tax.