How Ownership Changes and Business Continuity affects the Carry Forward of Tax Losses in tax group?

Tax Group
1

A Tax Loss can be carried forward by a Taxable Person under the following conditions:

  1. Ownership Condition: The owners of the Taxable Person shall maintain at least 50% ownership from the start of the period in which the Tax Loss is incurred to the end of the Tax Period when the Tax Loss is utilized against Taxable Income.

  2. Business Continuity Condition: If there is a change in ownership exceeding 50%, Tax Losses can still be carried forward if the same or similar business continues after the change.

For the limitation of Tax Losses to be carried forward, only the ownership interest in the Parent Company of the Tax Group is relevant.