You can carry forward a loss for five years, and in some cases and for certain industries, for a longer period.
If your business has incurred a loss after January 1, 2018, it may be carried forward for up to 10 years. The conditions for carrying forward a loss beyond five years are as follows:
You must notify the Tax Agency annually as part of the tax return process. The notification must be made electronically in one of two ways:
a) As part of the company's submission of its tax accounts with the tax return, or
b) Using a completed form, available at aka.gl.
In both cases, the notification must include a balance statement of the loss to be carried forward.
The company must declare in the notification (accounts or form) that it will retain the accounting records supporting the carried-forward loss for 2 years after the loss has been fully deducted.
Failure to meet the above requirements each year results in the loss of the right to carry forward losses beyond five years.
The deadline for the first notification of extended loss carryforward is the tax return deadline for the 5th income year after the loss was incurred. Therefore, losses incurred in 2018 must be reported to the Tax Agency by May 15, 2024 (for self-employed individuals) or June 15, 2024 (for companies).
Afterward, annual notification of loss carryforward must be submitted with the company’s electronic tax return by May 15 (for self-employed individuals) or June 15 (for companies).
Form for carry forward of losses.
The form can be found here in Greenlandic and Danish.