Losses may be carried back three years and carried forward indefinitely (art. 20'2 Corporate Income). Since the Dutch corporate income tax system (fortunately) does not work with boxes, baskets or schedules, there is generally no limitations on which profits can be offset by which losses. However, there are anti-abuse rules in place to prevent the transfer of companies with tax losses and the start-up of profit generating activities therein (art. 20a CIT).
Some specific rules on loss compensation include:
The anti-abuse rules determine that a taxpayer generally loses its right to off set results from before an important change in its ultimate beneficiaries with results from thereafter. Certain important changes are disregarded (art. 20a'2 CIT). Under the activities test, the anti-abuse rules are not applicable if there has not been or will not be a significant decrease in the activities of the taxpayer and if its assets does not mostly consist of investments (art. 20a'4 CIT). In the latter case, loss carry forward remains available to a limited extent (art. 20a'11 CIT). The taxpayer is allowed to increase the book value of its assets just before the moment that future loss carry forwards are disallowed (art. 20a'12 CIT).
Investments are defined to include the holding of liquid assets and exploited real estate, whilst certain investments held in the line of business of the taxpayer are excluded (art. 20a'8 CIT).