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7.1. General Rules

Operating losses can be carried forward for 3 years except in the oil and gas sector where the carryforward period is extended to 5 years (see Sec. 5.1. for Cost Oil deduction). Losses corresponding to minimum standard depreciation required to be booked in loss years may be carried forward indefinitely. As a general rule, companies (except new companies) which incur losses for 3 consecutive years are removed from the register of tax authorities.

The carry-back of losses is not permitted. Further, losses of one entity cannot be transferred to another entity in case of a merger or reorganization.