Article 39 – Limitation on Tax Losses Carried Forward

1. Tax Losses can only be carried forward and utilised in accordance with the provision of Clause 2 of Article 37 of this Decree-Law provided that:

1. 1. From the beginning of the Tax Period in which the Tax Loss is incurred to the end of the Tax Period in which the Tax Loss or part thereof is offset against Taxable Income of that period, the same Person or Persons continuously owned at least a 50% (fifty percent) ownership interest in the Taxable Person.
   2. The Taxable Person continued to conduct the same or a similar Business or Business Activity following a change in ownership of more than 50% (fifty percent).

2. For the purposes of paragraph (b) of Clause 1 of this Article, relevant factors for determining whether a Taxable Person has continued to conduct the same or a similar Business or Business Activity following a change in the direct or indirect ownership include:

1. 1. the Taxable Person uses some or all of the same assets as before the ownership change;
   2. the Taxable Person has not made significant changes to the core identity or operations of its Business since the ownership change; and
   3. where there have been any changes, these result from the development or exploitation of assets, services, processes, products or methods that existed before the ownership change.

3. Clause 1 of this Article shall not apply to a Taxable Person whose shares are listed on a Recognised Stock Exchange.