BIR issues workaround for Covid-19 loss carry-overs held back by tech limitations

BIR issues workaround for Covid-19 loss carry-overs held back by tech limitations

Businesses seeking to claim net operating losses incurred during the height of the pandemic in 2020 and 2021 cannot do so through the Bureau of Internal Revenue’s (BIR) standard electronic filing systems, which remain hard-coded for a three-year carry-over window.Under Republic Act No. 11494 (the Bayanihan to Heal as One Act), businesses are permitted to deduct losses incurred during the 2020 and 2021 taxable years over an extended five-year per…