Bilancio e reddito d’impresa

Loss carryforward for sole proprietorships and partnerships

Bilancio e reddito d’impresa n.3/2019

The regulation on the carryforward of tax losses of taxpayers subject to IRPEF has been amended, with the aim of unifying the treatment of losses in case of both simplified accounting and ordinary accounting.

On the one hand, the amendment has equalized the regulation on losses for businesses subject to IRPEF applying a simplified regime and those applying an ordinary regime and, on the other hand, it has provided the possibility to carry forward tax losses indefinitely and to deduct them from the business income of the following FYs within an 80%  limit, unless these losses were generated in the first three FYs and refer to a new production activity.


With Budget Law 2019, the current tax regulation on losses carryforward by taxpayers subject to IRPEF (sole proprietorships and partnerships), regardless of the accounting regime applied (simplified or ordinary), unifying the losses tax system applied to IRPEF taxpayers with that applied to IRES taxpayers. Particularly, up to FY 2017, losses generated by IRPEF taxpayers applying a simplified accounting system were treated differently from losses generated by applying an ordinary accounting system. The new provisions have introduced an equal treatment of losses, basing on the ordinary accounting system.


For further information, contact Gianluca Lacidogna and Luca Montessori.