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The "carry back", this key tax tool for companies in difficulty

2021-05-14T20:20:04.406Z


The device can improve the cash flow of indebted companies. According to our information, its strengthening is under study.


At a time when the government is doing everything it can to successfully end the crisis, in particular by bringing about a very gradual end to emergency aid, the fiscal nudges are also significant levers for restoring air to businesses.

This is the case of "carry back", or "deficit carry forward", which can improve the cash flow of indebted companies and whose strengthening is, according to our information, under study.

In normal times, this tax measure allows a company in poor health to charge its deficit to the profits made the previous year up to a limit of 1 million euros.

The interest?

Benefit from the reimbursement of part of the corporation tax already paid the previous year.

And, if the business does not use this debt to pay tax in the next five years, then it can recover it.

Read also:

Aid for businesses: more compensation required

The executive has already temporarily beefed up the device in the third crisis budget voted last July.

Companies that have

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Source: lefigaro

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