Business tax law also knows the principle of loss carry forward. Losses from previous collection periods reduce income in the following years, provided certain conditions are met. In addition, the law provides for some upper limits. However, if the identity of the entrepreneur or the company changes, there is a loss in the trade tax. The accumulated losses are then (no longer) deductible.

1st principle: losses from business operations are carryable

As usual in income tax law, positive and negative income from business operations are to be offset against each other first for purposes of business tax. The decisive factor is the so-called survey period, which usually corresponds to the calendar year. At the end of the respective period, either a profit (positive business income) or a loss (negative business income) remains. However, business tax only applies to profits; Losses are excluded from taxation.

Specific case Organism: The business income is normally calculated per commercial enterprise. However, if there is a body between several companies, all profits and losses within the body are offset. Here, too, a positive or a negative overall yield results in the end.

If a loss remains, § 10a GewStG applies. On the one hand, it regulates the loss loss in business tax, but in principle first prescribes how to deal with negative business income.

Profits incurred in subsequent years are included