On 4 June 2021, the Netherlands published the Decree of 21 May 2021 in the Official Gazette, which provides for the implementation of the net operating loss carry forward changes. This legislation will enter into force for fiscal years on or after 1 January 2022 and will apply to all tax losses arising as of 1 January 2022.
The current tax law provides that tax losses can be carried forward 6 years and carried back 1 year. According to the new legislation, loss carry back period will remain 1 year and the carry forward period will be unlimited. Though, the amount of the net operating loss utilization will be restricted to 50 per cent of taxable income (in excess of EUR 1 million).