Full carry-forward of losses: when a company really is running a new business

The tax judges of Lecce clarify the conditions for the full carry-forward of losses allowed by art. 84(2) TUIR (the Italian income tax code) to newly incorporated companies: the benefit is available only where the business genuinely starts a new productive activity, and not the mere continuation of an existing one.

For groups and for reorganisations the point is a delicate one: whether something qualifies as a “new productive activity” affects the tax planning of losses and must be evidenced concretely (organisation, market, operating assets). The firm advises on checking the conditions case by case.

Summary note by Studio Ponchio, based on specialised tax sources. The text does not reproduce the original articles and does not constitute professional advice.