How to recover your company’s tax losses

How to recover your company’s tax losses

Essentially, there are two ways in which tax losses can be recovered.

The first option is to take over the tax losses. A restriction however applies: the losses are only deductible in proportion to the share of the net fiscal value of the acquiring company before the transaction in the total net fiscal value of that company and of the acquired components before the transaction.

Another option is the fiscal consolidation, which has recently been introduced in Belgium with the so-called « group contribution ». It is applicable as of tax assessment year 2020. However, group contributions can only be applied between a (direct) parent company and its subsidiary company, as well as between fellow subsidiaries. The parent company should further hold at least 90% of the shares in the subsidiary company for at least five consecutive years. It should also be noted that this only applies to tax losses of the same tax year and not to tax losses carried forward from previous tax years.

Please do not hesitate to contact us if you wish to know how to recover the tax losses of your company or whether your are eligible for fiscal consolidation.

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