BIR: The Secretary of Finance has promulgated RR No. 25-2020 dated September 30, 2020 to implement Section 4 (bbbb) of Republic Act No. 11494, otherwise known as the Bayanihan To Recover As One Act.
Businesses or enterprises which incurred net operating loss for taxable years 2020 and 2021 shall be allowed to carry over the same as a deduction from its gross income for the next five (5) consecutive taxable years immediately following the year of such loss unless otherwise disqualified from claiming the deduction. The net operating loss for said taxable years may be carried over as a deduction even after the expiration of RA No. 11494 provided the same are claimed within the next five (5) consecutive taxable years immediately following the year of such loss.
For the full text of Revenue Regulations No. 25-2020 please visit this link: https://www.bir.gov.ph