Commission recommendation on the tax treatment of losses
On 18 May 2021 the Commission published a recommendation on the tax treatment of losses during the COVID-19 crisis. The commission is recommending that Member States should allow loss carry back for businesses to at least the previous fiscal year, i.e. at least 2019, and may extend that period to allow loss carry back up to the previous three years.
This Recommendation is one of the five Action Points put forward by the Commission in the context of the Communication on Business Taxation for the 21st Century (See MIT news 19 May 2021).