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Italian tax loss carry-forward: how much you can offset this year

Tax losses from earlier years reduce the taxable income of each later period by up to 80 % of that income, with no time limit. Losses from the first three tax periods after incorporation, when they relate to a new business activity, can instead wipe out the whole taxable income.

2026 rules — verified on September 25, 2026Free, no account

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Your result

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Sources and assumptions

  • Gazzetta Ufficiale — TUIR (DPR 917/1986) — tax year 2026, verified on September 25, 2026
    Excerpt from the source : « puo' essere computata in diminuzione del reddito dei periodi d'imposta successivi in misura non superiore all'ottanta per cento del reddito imponibile di ciascuno di essi e per l'intero importo che trova capienza in tale ammontare »
  • Agenzia delle Entrate — tax year 2026, verified on September 24, 2026
    Excerpt from the source : « L'aliquota d'imposta sui redditi delle società (Ires) è pari al 24%. »
  • Agenzia delle Entrate — tax year 2026, verified on September 24, 2026
    Excerpt from the source : « per il solo periodo d’imposta successivo a quello in corso al 31 dicembre 2024 (ossia, per i contribuenti con esercizio coincidente con l’anno solare, il 2025), la riduzione dell’aliquota dal 24 al 20%, al ricorrere di alcune condizioni »
  • Agenzia delle Entrate — tax year 2026, verified on September 24, 2026
    Excerpt from the source : « almeno l’80% degli utili 2024 deve essere accantonato ad apposita riserva »
  • Agenzia delle Entrate — tax year 2026, verified on September 24, 2026
    Excerpt from the source : « almeno il 30% di tali utili accantonati (comunque, non inferiore al 24% degli utili 2023 e, in ogni caso, non inferiore a 20.000 euro) va investito in beni strumentali nuovi »
  • Agenzia delle Entrate — tax year 2026, verified on September 24, 2026
    Excerpt from the source : « (comunque, non inferiore al 24% degli utili 2023 e, in ogni caso, non inferiore a 20.000 euro) »
  • Agenzia delle Entrate — tax year 2026, verified on September 24, 2026
    Excerpt from the source : « (comunque, non inferiore al 24% degli utili 2023 e, in ogni caso, non inferiore a 20.000 euro) »
  • Agenzia delle Entrate — tax year 2026, verified on September 24, 2026
    Excerpt from the source : « vanno assunti nuovi lavoratori dipendenti a tempo indeterminato in misura tale da garantire un incremento occupazionale di almeno l’1% rispetto al periodo d’imposta in corso al 31 dicembre 2024 »

Calculation assumptions

  • The period's taxable income before losses is entered by you: the tool does not derive it from the accounts and ignores the exempt income that reduces a loss.
  • The 80 % cap is measured on the period's income before any offset; capped losses are used first, which keeps the uncapped ones for later. Using them the other way round gives the same final taxable income.
  • Not covered: the restriction that follows a sale of the controlling stake combined with a change of business, the minimum income of non-operating ("di comodo") companies, group tax consolidation and IRES premiale. IRES is worked out at the standard rate.

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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.