In the dynamic world of entrepreneurship, profits are not always guaranteed. Fortunately, Dutch corporate income tax (vpb) offers entrepreneurs a valuable tool to offset losses: carry back. But what exactly does this scheme entail, and how can you make the best use of it?
What is Carry Back?
Carry back – also known as backward loss relief – allows companies to offset a loss from the current financial year against the previous year’s profit. This can result in a tax refund, providing immediate financial headroom.
For example: Say you suffer a loss of €20,000 in 2025, while you had a profit of €50,000 in 2024. By applying carryback, your 2024 profit is adjusted to €30,000. You will then receive a tax refund on the offset amount.
The Rules Around Carry Back
The tax authorities apply a clear order: first carry back, then carry forward (loss carry forward). This means that you must first offset a loss against the previous year’s profit before you are allowed to carry it forward to future years.
Key points:
- Term: Carry back is limited to one year. So you can only set off the loss of, say, 2025 against the gain of 2024.
- Provisional loss relief: You don’t have to wait until the final assessment. After filing your tax return, you can make a written request for provisional loss relief. This will set off up to 80% of the loss.
Why Carry Back Matters
Carry back is especially valuable in situations where you:
- Experience unexpected losses and need liquidity quickly.
- Made a profit in the previous year and now want to reduce tax burden.
- Want to plan strategically to take advantage of tax benefits.
Issues for 2025
From 2025, the rules around loss relief have changed:
- The order of settlement is mandatory: first back, then forward.
- The low vpb rate remains 19% up to €200,000; the high rate is 25.8% above that.
- When loss relief and remission gains coincide, new exemptions apply, which is especially relevant in cases of restructuring.
Carryback is a powerful tool to offset losses for tax purposes and keep your company financially sound. By applying the scheme smartly and taking timely action, you can enjoy tax benefits and improve your liquidity.
TriFact365’s role in loss relief
When applying carryback, accurate and timely administration is essential. TriFact365 plays a crucial role in this by digitising and automating the invoice processing process.
Thanks to real-time insight into your financial records and direct links to accounting software, you always have up-to-date figures.
This makes it easier to identify losses quickly and take immediate action, such as filing a request for provisional loss relief. Thus, TriFact365 helps entrepreneurs not only with efficiency but also with tax optimisation.
