Le législateur fiscal a prévu la possibilité pour les contribuables de reporter ou d’imputer le déficit fiscal d’un exercice antérieur sur les exercices ultérieurs. Concrètement, il s’agit de transformer un déficit fiscal, c’est-à-dire le résultat négatif issu de la détermination du résultat fiscal au cours d’un exercice, en une charge extracomptables théoriquement rattachable aux exercices ultérieurs. Sa mise en œuvre s’opère par l’imputation de manière extracomptable du déficit antérieur à concurrence du résultat fiscal bénéficiaire. C’est une faveur à laquelle les contribuables ont couramment recours.
However, in order to make the best possible use of losses carried forward, it is important to identify the best practices in terms of deduction methods, restrictions or limits on their deduction. To this end, it is particularly important in this tax season to share with our customers a few best practices to adopt when determining taxable income, in order to make optimum use of losses carried forward.
- Clearly identifying usable tax losses
First of all, it should be made clear that the tax loss must be distinguished from the accounting loss calculated on the basis of accounting entries alone, without any restatement of income and expenses for tax purposes. A tax loss results from the negative difference between income and tax-allowable expenses when determining taxable income for the year. Whether a year is profitable or in deficit is determined by reference to the accounting result, increased by extra-accountable additions of non-tax-deductible expenses and reduced by extra-accountable deductions of non-tax-deductible income, before taking into account deficits from previous years.
Therefore, in order to keep track of the stock of available losses, it is advisable to draw up a summary statement of the constitution and allocation of losses carried forward.
- By transforming the tax loss for the year into Deferred Tax Depreciation (D.T.D.) and Ordinary Tax Loss (O.T.L.)
Lorsque le résultat fiscal de l’exercice est déficitaire, la loi permet à la société de différer les amortissements régulièrement comptabilisés (c’est-à-dire conformes aux règles de déductibilité fiscale des charges d’amortissements) au titre dudit exercice. C’est le déficit fiscal ainsi constitué du déficit ordinaire de l’exercice et des amortissements de l’exercice déficitaire, réputés différés qui seront reportables sur les exercices ultérieurs.
In summary, the loss carried forward is made up of :
- the ordinary tax loss for the year and depreciation for the year deemed to have been deferred,
- the previous ordinary tax loss not affected by the foreclosure,
- deferred depreciation created in respect of prior years.
- By respecting the order of allocation of losses carried forward
The General Tax Code sets out the conditions and limits for deducting tax losses.
Under the provisions of the aforementioned Code, taxable income is determined by adding back depreciation for the year already booked, when the year is in deficit (in order to defer it in anticipation of a profitable year), or by deducting ordinary losses from previous years not affected by the foreclosure, and then deferring depreciation deemed to have been deferred from previous years, when the year is profitable.
On this basis, a company that posts a loss must in principle apply its tax loss carryforwards in a certain order, as follows:
- First step: defer all or part of the year's normal depreciation up to the amount of the year's tax loss.
- Second step: offset ordinary losses that can still be carried forward.
- Third step: deduct deferred depreciation from prior years' losses
We would point out that if expenses are incurred that are eligible for the tax reduction for investments in Senegal, they will be charged within the time allowed, after the ordinary tax loss carryforwards and the deferred tax assets.
- Respecting the time limit for tax loss carryforwards
A distinction must be made between ordinary deficit and deferred depreciation.
The tax loss can be carried forward successively over the three years following the loss-making year. After this three-year period, the company loses the right to carry forward and offset the loss. This limitation does not apply to the portion of the loss corresponding to depreciation properly booked but deemed deferred during the loss-making period. For this category of loss, the carry-forward period is unlimited in time.
