The European Commission adopted, on Tuesday 18 May, in parallel to its Communication on company taxation (see other news), a Recommendation on the tax treatment of losses, in order to support companies during their post-Covid-19 recovery phase.
In concrete terms, the Commission calls on Member States to allow loss-carry back for businesses to at least the previous fiscal year. In this way, companies that were making a profit and paying taxes in the years prior to 2020 would be able to...