The application of losses from previous years, which were declared in the annual declaration on income tax of organizations and entrepreneurs, can be implemented within the next five years. Brief information – further.

Losses incurred in previous years may be taken into account when calculating and paying income tax for the next five years. Losses from previous years may be taken into account by both organizations and entrepreneurs who pay taxes under the general form of taxation (skala podatkowa) or the linear tax (podatek liniowy). That is, a loss incurred in a given tax year may be deducted:

• for the next five consecutive tax years, provided that the amount of the deduction in any one of those years cannot exceed 50% of that loss, or
• in one of five consecutive tax years, but the amount deducted at one time may not exceed PLN 5 million (an amount above this amount is deducted in the remaining years of the five-year period, but may not exceed 50% of the amount of the loss incurred).

Losses incurred in previous years must be attributed to income received on the same basis, for example, in the case of CIT from capital gains or other activities. There are limitations on the deduction of losses depending on their source, for example, income that is not subject to income tax, from the sale of virtual currencies, etc.

These losses may be taken into account when calculating income tax during the tax year when calculating advance payments or by filing an annual CIT or PIT return.

Detailed information on the application of this tax deduction on the portal at the link.