Philippines Tax Agency Issues Regulation Implementing Five-Year Loss Carry-Forward Rules

The Philippine Bureau of Internal Revenue Sept. 30 issued Revenue Regulation No. 25-2020, implementing rules for the five-year carry-forward of net operating losses (NOLCO) incurred in 2020 and 2021. The regulation includes: 1) the definition of gross income, allowable deductions, net operating loss, taxable income, taxable years, and fiscal years for NOLCO purposes; 2) the obligation to separately claim the five-year NOLCO in the income tax declaration and declare unused NOLCO in the financial statement; and 3) the repeal of rules and regulations inconsistent with the current regulation. The regulation enters into force the same date. [Philippines, Bureau of Internal ...