Temporary relaxation of loss carry-back for corporate income tax

Article 1 of the first amending finance act for 2021 allows companies subject to corporate income tax to offset, on option, the loss of the first loss-making financial year closed between 30 June 2020 and 30 June 2021 against the profits of the three previous financial years, without the €1 million cap or the restriction to the previous year only provided for in Article 220 quinquies of the General Tax Code. The option must be exercised no later than the filing deadline for the tax return of a financial year closed on 30 June 2021. The resulting excess tax creates a claim on the State, calculated at the corporate income tax rate applicable from 2022. The same article specifies the tax and social security treatment of crisis aid paid outside the solidarity fund.