Accumulated Loss from previous years

[mango]

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

[mango]

Hi there,

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

Regards

[Andromeda]

Hello mango
Any accumulated assessed loss is carried forward and deducted from each year's profits until it has been fully utilised.

[Justloadit]

Tax is calculated after the subtraction of the previous year/s loss/losses

[mango]

Many thanks Andromeda and Justloadit !

[dellatjie]

Just make sure that SARS has assessed you for the same loss as on the financial statements in the previous year...

[Stephanie1]

How to enter it on the ITR14

Just make sure that SARS has assessed you for the same loss as on the financial statements in the previous year...

Where do I enter accumulated loss from the previous year on the ITR14 on efilling?

[Andromeda]

SARS automatically enter it.