Offsetting of losses

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In tax law means loss offset the offsetting of losses and gains together. This reduces the tax base . A number of tax regulations prevent unlimited loss offsetting.

Types of loss offsetting

Loss compensation can be differentiated according to the following aspects:

  • Horizontal (internal) loss compensation: loss compensation with income of the same type of income .
  • Vertical (external) loss compensation: loss compensation with income of another type (see also dual income tax ).
  • through periodic Verlustrück- and seminar presentation in other assessment periods (see loss carryforward ).

The effects of the exemptions that restrict loss compensation can be distinguished as follows:

  • Effects on the amount of income,
  • Effects on the type of income,
  • Effects on the type of tax,
  • Effects on the real burden of the losses.

Effects of Loss Offsetting Restrictions

Restrictions on loss offsetting violate the net tax principle and thus, in the case of income tax, the performance principle . Under constitutional law, this is only permissible within certain limits. The legislature uses regulations to restrict loss offsetting in order to close existing or supposed tax loopholes.

Legal issues

A restriction with regard to the amount of income is the minimum taxation ( § 10d EStG ). Here, the amount of the loss offset from previous years is limited solely on the basis of their amount.

With the introduction of the final withholding tax , the possibility of offsetting the other types of income with the income from capital assets will no longer apply . Some types of losses with a foreign connection may only be offset with positive income of the same type from the same country ( Section 2a (1) EStG).

In the trade tax , a loss offsetting of the trade income with deficits from previous years is possible ( § 10a GewStG ).

In the case of corporations , the offsetting of losses for corporation tax and trade tax is restricted in accordance with Section 8c (1) KStG if more than 50% of the shares in the corporation are transferred to an acquirer. Since 2008, the economic identity (Section 8 (4) KStG old version) no longer has to be taken into account.

International

In Austria , loss compensation is basically possible with all types of income. However, there are exceptions, e.g. B. Losses from "loss sharing", administration of intangible assets, commercial leasing or speculative transactions. An unlimited amount of loss can be carried forward. The loss compensation over time is limited to 75% of the total amount of income in the respective assessment year.

Since 2001, the box system has been in place in the Netherlands with three different types of income, different tax rates and without the option of offsetting losses. (Box 1 = income from work (progressive tax rate up to 52%); Box 2 = income from investments (uniform tax rate of 25%); Box 3 = income from property holdings (uniform tax rate of 30%)).

See also

literature

Individual evidence

  1. ↑ Ingo Müssener: The Dutch Tax System at a Glance , IWB Fach 5, Group 2, June 12, 2002, p. 331.