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Q: How many years can a company carry forward its business loss? The company incurs business loss in the first, second, and third year, but manages to generate profit in the fourth year. What is the tax treatment for the losses incurred?
A: With effect from the Year of Assessment (YA) 2019, a company can carry forward its business loss for 10 consecutive YAs from the YA the loss is incurred. As such, the business losses incurred by the company for 3 consecutive YAs can be accumulated and carried forward to the fourth YA, to be set off against its business income in that YA.
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YYC Tax Guru