What if my company incurs a business loss during the year. Can such losses be carried over to the next financial year ?
Business losses and unutilized wear and tear allowances may be carried forward for offset against the future profits of the company provided that the shareholders and their shareholdings in the company remains substantially the same (ie. 50% or more) in the year of loss and the year where the loss are utilized for set off against the year when the profits are available. Alternatively, the unutilized business loss and wear and tear allowance for the year may be used to set off against the profit of another company within the same group. The conditions for transfer of such business loss and wear and tear allowance is that the companies involved must belong to the same group, incorporated in Singapore and have the same financial year-end.
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