COVID-19 Temporary Loss Carry-Back Scheme

A temporary loss carry-back scheme has been introduced to support customers in the current uncertain economic environment.

Businesses expecting to make a loss in either the 2020 year or the 2021 year can use that loss to offset profits they made the year before. In other words, they can carry the loss back one year to the preceding income year. This can be done before the loss year return is filed.

There are two ways to claim your loss carry-back:

  • Include the carried back loss in your tax return – IRD will automatically refund any overpaid tax.

  • Ask for a refund of any provisional tax you have paid for 2020 if you are going to carry back a loss from 2021.

IRD can refund some or all of the tax already paid for the preceding year before the loss year has finished by enabling customers to estimate their loss. Refunds will be processed a lot faster if you use myIR.

We recommend you discuss your options with your accountant.

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