Business entities are allowed to carry forward unabsorbed losses and unutilised capital allowances in a year of assessment for a maximum period of seven years of assessment, said Minister of Finance Lim Guan Eng.

Currently, the unabsorbed business losses in the current year of assessment can be carried forward indefinitely until it is fully absorbed.

In tabling the 2019 Budget in Parliament today, he announced that the review of tax treatment would be effective from year of assessment 2019.

“This could minimise the revenue loss to the government,” he added.

As for the unutilised capital allowances in a current assessment year, Lim disclosed that it can be carried forward to be deducted from the adjusted income of the subsequent years of assessment indefinitely until it was fully utilised. - Bernama