Utilization of losses
Income and losses from different income categories can be fully
offset against each other without limitations during any given
tax assessment period. However, certain exceptions continue to
exist for special types of income such as losses from livestock
breeding businesses, or losses from private sales transactions.
If, after offset between the various income categories, a net
loss results for an assessment period, it can be used to offset
income in other assessment periods.
– The first option is to carry the losses back to the preceding
year. There is a ceiling of € 1,000,000 (€ 2,000,000 for mar-
ried couples and civil partners fling jointly).
– If a loss still remains after the carryback, or if the loss
carryforward is chosen instead, it can be carried forward to
future assessment periods indefnitely. Restrictions apply
under the so-called minimum taxation rules, by which loss
carryforwards may be fully offset against net income only
up to a maximum of € 1m.
Loss carryforwards in excess of
this amount may be offset against only 60% of the total net
income exceeding said € 1m threshold.