From previous years existing loss (separately established as at 31.12.2022) | EUR 1.100.000
Of which EUR 1.000.000 exceeds | EUR 100.000
Of which 60 % deductible (§ 10a sentence 2 GewStG) | EUR 60,000
Profit achieved within the meaning of § 7 sentence 1 GewStG | EUR 1,100,000
Deductible loss from previous years | EUR 1,060,000
Profit subject to business tax in 2023 according to § 10a sentence 1 | EUR 40,000
Loss as at 31.12.2023 | EUR 0,00
If income tax losses arise, they “migrate” through § 7 GewStG into the trade tax. However, other rules of the game apply here for the consideration of business losses – among other things, there are only advances, but no returns. We look at what § 10a GewStG regulates, what restrictions there are and to what extent a business loss is transferable when selling the company.
According to § 7 sentence 1 GewStG, the income tax profit (§ 15 EStG) or income (§§ 7 and 8 KStG) is decisive for the assessment of business tax. Additions according to § 8 GewStG increase, reductions according to § 9 GewStG reduce the tax base. As a result, a business loss in the income and corporate income tax sense is also relevant for the calculation of business tax.
§ 10a GewStG determines whether and to what extent a business loss can reduce the business tax in the following assessment periods. It shall apply that:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.