098 Review of the carry-over system of the losses and Impact on the tax effect
Review of the carry-over system of losses had been considered in the 2011 Tax Reform.
For publicly listed company, the followings will be applied
(1) Deadline of the carry-over loss is extended to nine years
(2) Deductible carryover is equivalent to 80% of the amount of income before deduction.
In addition, the dates of application are as follows:
(1) Extension of the carry-over period can be retrospectively applied from the fiscal year ended on or after April 1 2008.
(2) Restriction of the carry-over deduction is effective from the fiscal year beginning on or after April 1 2012
According to this reform, it should be noted that restriction of the deduction of carry-over loss and extension of the carry-over period could make a important impact on the scheduling of tax effect.
