What is underskudsfremførsel (loss carry-forward)?

In short

Underskudsfremførsel means a tax loss from one year can be deducted from future years' profits, reducing the tax then.

In practice

Losses carry forward without time limit. In a sole proprietorship the loss first offsets your other income that year — salary or your spouse's income, for example. Companies with very large carried-forward losses face a cap on how much can be offset each year.

Related terms

• Selskabsskat (corporate tax)
• Årets resultat (profit for the year)
• Oplysningsskema (tax return)
• See every term in the dictionary

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