Luxembourg Administrative Court, 16 May 2023, No. 48,366C 

The deduction of losses carried forward is only permissible to the extent that the losses could not be offset against other net income during the tax year corresponding to the financial year in which these losses arose. Moreover, tax losses must be utilised as promptly as possible, and a taxpayer is not entitled to spread them over multiple years in the presence of positive taxable income. 

A company is not permitted to carry forward losses accrued during the years covered by a prior advance tax clearance. Consequently, they cannot offset them with positive income generated from the first year not covered by such advance tax clearance. 

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