Have a Tax Question? Ask a Tax Expert
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Let me begin by telling you that the reason it has taken so long to get an expert to respond to your question is that we do not have an expert in Cyprus Tax Law. I will be able to tell you the basics on corporate losses but if you are going to need detailed info you will need to work with your tax professional in Cyprus.
If your losses are from 1997 onward you can apply them against profits from other activities. If in the same year there are no profits from other activities tax losses can be carried forward and set off against taxable income without time limit. A company in Cyprus can set off losses from a permanent establishment abroad against profits from the company in Cyprus. Then any subsequent profits of the permanent establishment abroad would be taxed in Cyprus to the extent of the allowable losses, which were set off.
There is also group loss relief. Group loss relief is allowed only if both companies are tax residents in Cyprus. With this, you can offset the tax loss of one company in the group with the taxable income of another company in the same group.
If you do have International business units, the time to be able to carry forward do not start in 1997, they would begin from 2003.I sincerely XXXXX XXXXX information is helpful. Here is a link to the Inland Revenue Departmenthttp://www.mof.gov.cy/mof/ird/ird.nsf/All/F511884FFDD51933C225738D003F7425?OpenDocument
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