Results 1 to 6 of 6

Thread: Accumulated Loss from previous years

  1. #1
    Full Member
    Join Date
    Mar 2014
    Location
    Cape town
    Posts
    35
    Thanks
    13
    Thanked 1 Time in 1 Post

    Accumulated Loss from previous years

    Hi All,

    I just want to find out the following...

    If a company say made a Loss in the 2013 year say -R 50 000, and that company made a profit of say R 40 000 the following year.

    Will this be treated as (-50 000 + 40 000) = -R10 000 assessed Loss so we dont have to pay Income tax?

    Or

    Will the second years Profits of R40 000 be seen as profits and well have to pay taxes on that? Then the balance of the loss will carry over
    to the next year?

    Any help would be usefull..

    Thank you

  2. #2
    Full Member
    Join Date
    Mar 2014
    Location
    Cape town
    Posts
    35
    Thanks
    13
    Thanked 1 Time in 1 Post
    Hi there,

    Anybody that can assist me with this please? I cant find on the net what i am looking for...

    Regards

  3. #3
    Silver Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    201
    Thanks
    17
    Thanked 42 Times in 36 Posts
    Hello mango
    Any accumulated assessed loss is carried forward and deducted from each year's profits until it has been fully utilised.

  4. #4
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    Tax is calculated after the subtraction of the previous year/s loss/losses
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  5. #5
    Full Member
    Join Date
    Mar 2014
    Location
    Cape town
    Posts
    35
    Thanks
    13
    Thanked 1 Time in 1 Post
    Many thanks Andromeda and Justloadit !


  6. #6
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    262
    Thanks
    52
    Thanked 39 Times in 35 Posts
    Just make sure that SARS has assessed you for the same loss as on the financial statements in the previous year...

Similar Threads

  1. ITR14 2014 - how to record an accumulated loss
    By Colin Reeves in forum Tax Forum
    Replies: 6
    Last Post: 12-Sep-14, 05:10 PM
  2. Replies: 16
    Last Post: 20-Jun-13, 08:17 PM
  3. [Question] CC Accumulated Losses
    By Singhms in forum Accounting Forum
    Replies: 6
    Last Post: 06-Aug-12, 07:10 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •