Extended time limit to carry forward unabsorbed business losses

  

Previously, the time limit for unabsorbed adjusted business losses to be carried forward has been limited to a period of 7 consecutive years of assessment (“YAs”). Under the said Public Ruling, the time limit for taxpayers to carry forward unabsorbed business losses has been extended for a period of 10 YAs, effective YA 2019.

  

If a company has adjusted business loss in YA 2019, the unabsorbed business loss can be carried forward and fully utilized from YA 2020 to YA 2029. Any balance of the unutilized business loss will be disregarded from YA 2030.