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Losses may be carried forward for 5 years. Certain industries, such as oil and gas operation under a Production Sharing Contract, are permitted to carry forward losses indefinitely as regulated by the contract.

Under the self-assessment system, a company submits its corporate income tax calculation subject to subsequent examination / audit by the tax administration. Tax losses claimed in the return are assumed acceptable unless adjusted through the issuance of a tax assessment after an audit is completed.

The Income Tax Law prohibits any losses incurred outside Indonesia to be credited in Indonesia.

Loss carry-back is not permitted.