On 10 August 2021, the Luxembourg Tax Authorities has published Circular No. 31, which clarifies the application of the loss carry-forward under the municipal business tax.
Losses incurred with effect from 1 January 2017 are available for carry-forward (with the possibility of a 100% offset of annual profits) for a period of 17 years. Unlimited loss carry-forward applies between 1 January 1991 and 31 December 2016.
The Circular states that the losses incurred between 1 January 1991 and 31 December 2016 must be compensated first. Then, a loss carry-forward can be claimed for losses made from 1 January 2017 (subject to the 17-year limit).
