Companies may carry forward tax losses incurred during a tax year over the next five years to be offset against taxable income.

The current year loss of one company can be set off against the profit of another, subject to conditions, provided the companies are Cyprus tax resident companies of a group. Two companies are considered to be part of a group for group relief purposes if one is a 75% subsidiary of the other, or both are 75% subsidiaries of a third company.

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