How can I claim losses in the annual financial statements?
March 12, 2022 | 30,00 EUR | answered by Louis König
Dear tax consultant,
My name is Katrin Müller and I am the managing director of a small GmbH. Unfortunately, we incurred losses in the past fiscal year and I am wondering how I can claim these losses in the annual financial statements. We had some unforeseen expenses, mainly due to the current economic situation that has affected our revenues.
The current situation is that we have a negative annual surplus and I am concerned that this could have a negative impact on our financial situation. I am worried about how we can account for the losses for tax purposes to reduce our tax burden and avoid potential financial difficulties.
What are the options for claiming losses in the annual financial statements? Are there specific regulations or measures that we as a GmbH can take to utilize the losses for tax purposes and potentially generate profits in the coming years? I would appreciate your professional advice and recommendations to improve our financial situation and to remain successful in the long term.
Thank you in advance for your support.
Best regards,
Katrin Müller
Dear Mrs. Müller,
Thank you for your inquiry regarding the tax treatment of losses in the annual financial statements of your GmbH. I am sorry to hear that your company had losses in the past business year. It is important to correctly record these losses and claim them for tax purposes in order to improve your financial situation and avoid potential financial difficulties.
First of all, it is important to know that losses in the annual financial statements can be claimed for tax purposes. As your GmbH is a corporation, the losses can be offset against future profits. This is known as loss carryforward. The losses reduce the taxable basis and may result in lower taxes in the coming years when profits are made again.
To properly handle the losses in the annual financial statements, you need to first show them in the profit and loss statement. The losses are offset against the equity and result in a negative annual surplus. This negative annual surplus can then be claimed as a loss carryforward in the tax return.
There are also certain tax measures that you as a GmbH can take to utilize the losses and reduce your tax burden. Under certain conditions, for example, it is possible to apply for a loss carryback to offset the losses against previously taxed profits from previous years. This can help you receive a tax refund and improve your liquidity.
It is also advisable to develop a long-term strategy to bring your company back into profit. This could include optimizing business processes, entering new markets, or reducing costs. Professional advice from a tax advisor can help you plan and implement the right steps.
I hope this information is helpful to you and I am available to discuss your individual situation in more detail and offer you tailored solutions.
Best regards,
Louis König
