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1 Elke Asen, Net Operating Loss Policies in the OECD 1 (2021)

handle is hein.taxfoundation/ntoglsps0001 and id is 1 raw text is: Net Operating Loss Policies
in the OECD
Elke Asen  Policy Analyst

FISCAL
FACT
No. 770
June 2021

Key Findings
 Net operating loss (NOL) deductions (carryforwards and carrybacks) help
ensure that businesses are taxed on their average profitability, which makes
the tax code more neutral across businesses and over time.
 Ideally, countries should allow their businesses to carry their losses forward
and back without any limits. However, no OECD country with a standard
corporate income tax system allows unlimited NOL deductions.
 During the COVID-19 pandemic, several OECD countries temporarily
expanded their NOL carrybacks and carryforwards to provide relief to illiquid
but otherwise solvent businesses. These policies should be made permanent
and, where necessary, expanded.

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