Big investors hit by caps on tax loss carryovers

BDTax

A tax loss carryforward works by tracking cumulative losses, which are used to offset future profits until fully exhausted.

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Investors in capital-intensive sectors such as energy, infrastructure and manufacturing face intense financial pressure after the Finance Act 2025 capped the period for carrying over tax losses at five years, analysts said.

A net operating loss or tax loss carryforward is a tax provision that allows firms to carry forward losses from prior years to offset future profits, and, therefore, lower future income taxes.

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