How to Transfer Tax Losses Between Group Companies and Reduce the Overall Tax Burden

Efficient tax loss transfer between group companies is a smart way to reduce your corporate tax burden – if done correctly.

Ivona Karklinevska, Project Manager at Nordgain, outlines the key conditions, common mistakes, and how to ensure a compliant and timely tax loss transfer.

According to Ivona Karklinevska, Project Manager at Nordgain, the most common issues in practice include: companies simply being unaware of the option to transfer tax losses; failing to provide the required information or submitting it inaccurately in the PLN204 declaration; lacking properly formalized documentation such as the Tax Loss Transfer Agreement; and in some cases, companies attempting to participate in the transfer process without meeting all the necessary conditions, which may result in incorrect corporate income tax calculations and additional financial consequences.

Don’t forget – PLN204 corporate income tax return deadline is June 16, 2025!

Read more [in Lithuanian]: link to article.