Manila, April 27 -- The Department of Finance (DOF) has proposed to extend the net operating loss carry-over (NOLCO) for small businesses to five years, with the government absorbing as much as PHP139.6 billion in the form of foregone tax payments to help these enterprises recoup their losses resulting from the economic fallout triggered by the coronavirus disease 2019 (Covid-19) pandemic.
Finance Secretary Carlos Dominguez III said stretching the NOLCO by two more years, which, under the National Internal Revenue Code (NIRC), is up to three taxable years only, would require Congressional approval.
"We will propose to Congress an extended NOLCO of five years for net losses that will be incurred in 2020. This means that a small business' l...