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Will my tax losses still have any value in the future?

Walter Verra Walter Verra

Obtaining sufficient funding to finance R&D activities is a major challenge for many companies in the life sciences industry. It forces you to constantly monitor the cash position, actively search for investors or attract other forms of financing. In practice we see that innovative companies actively manage their tax position to obtain instant tax benefits, such as Research and Development benefits (WBSO). The savings from tax benefits ensure that more money can go back into R&D activities. But what if we say there are other ways to achieve savings in terms of taxes.

The compensation of tax losses against future profits

A question you also need to ask yourself is whether you can (still) utilize incurred tax losses in future years. Through the compensation of tax losses against (future) profits, the tax burden could be reduced. As of January 2019 it has become even more important to actively manage the utilization of tax losses; as of this year the period for the utilization of tax losses has been reduced from 9 to 6 years. A legislative change with a lot of impact for the life science industry, as the 9-year period was already not feasible for many companies. So we recommend you to take appropriate action at an early stage as the choices you make now cannot be reversed in the future. The active management of tax losses could lead to millions in (future) cash benefits.

Our corporate income tax solution

Are you at risk of losses that can no longer be used for loss compensation? If so, do you know to what extent you can (still) prevent this? Our specialists can review, based on an interview and an analysis of the annual statements and your corporate income tax returns, whether your tax position is optimal and your losses are future proof. We consult on the reported results of the review with you, in order to come to an understanding of the status of the tax position and the ways to optimize it. In many cases the risk of losing tax losses for compensation could be substantially reduced through simple actions.

  • You will have a quick and cost-effective way to obtain insight into your corporate tax position through our corporate income tax check.
  • You will discuss the outcome of the check with our specialists and will receive practical advice on the improvement of your tax position.
  • You can show to stakeholders that you add value to the company.
  • We can offer the corporate income tax check based on a no-cure-no-pay basis.