Pre-consolidation losses in a Dutch fiscal unity

A pre-consolidation loss inside a Dutch CIT fiscal unity can only be set off against the profit attributable to that same company, not against the total profit of the unity. This is called profit splitting and it is set out in article 15ae of the CIT Act 1969. Below is how the set-off of pre-consolidation losses works, with a worked example and the effect on a company that later leaves the unity.

What are pre-consolidation losses?

Pre-consolidation losses (voorvoegingsverliezen) are losses a company incurred in the years before it joined the fiscal unity, so before the consolidation date. A holding or operating company can bring such a loss with it when it is consolidated. The loss is not lost, but the law strictly limits which profit you may set it off against.

The reverse also exists: a pre-consolidation profit is profit from before the consolidation date against which a later loss of the unity can be set off (carry-back). Both run through the same attribution rule.

How do you set off a pre-consolidation loss within the fiscal unity?

A pre-consolidation loss is set off against the taxable profit of the fiscal unity only insofar as that profit is attributable to the company concerned (article 15ae(1)(a) CIT Act 1969). The profit of the whole unity does not count. Only the part the loss-making company earned itself is available for set-off.

Profit splitting: attributing profit to the right company

To work out how much of the unity's profit is attributable to a company, you apply profit splitting. That company's profit is calculated as if it were not part of the fiscal unity, and then attributed insofar as that standalone profit is reflected in the unity's result. The method is in article 15ah CIT Act 1969. Intra-group transactions are taken into account in the split, so the attribution follows each company's real contribution.

The order is therefore: first split the unity profit to isolate the company's own result, then set the pre-consolidation loss against that isolated amount.

Worked example: pre-consolidation loss of Subsidiary B

Suppose Holding BV has formed a fiscal unity with Subsidiary A BV and Subsidiary B BV since 1 January 2025. Subsidiary B brought a pre-consolidation loss of € 300,000 from 2024. In 2025 the unity's taxable profit is € 500,000.

After profit splitting, the own result is:

• Holding BV: € 0
• Subsidiary A BV: € 380,000 profit
• Subsidiary B BV: € 120,000 profit

Subsidiary B's pre-consolidation loss (€ 300,000) can only be set off against the € 120,000 attributable to Subsidiary B. So € 120,000 is set off and € 180,000 remains as a carry-forward pre-consolidation loss of Subsidiary B. Subsidiary A's profit (€ 380,000) stays fully taxed: you cannot offset B's loss against it, even though everything sits in one unity.

Set-off order and the € 1 million threshold

Since 1 January 2022 losses carry forward without a time limit, but each year there is a cap: you set off at most € 1 million plus 50% of the taxable profit above € 1 million (article 20(2) CIT Act 1969). This cap is calculated over the taxable profit of the fiscal unity as a whole.

Example: if the unity has a taxable profit of € 3 million in 2026, then at most € 1 million + 50% × (€ 3 million − € 1 million) = € 2 million of losses can be set off that year. At least € 1 million stays taxed. For a pre-consolidation loss two limits apply alongside each other: the article 20 cap over the profit of the unity as a whole, and the profit attributable to that single company (article 15ae). How the two interact can be complex in practice. The Dutch tax authority explains the main rule of loss relief in corporate income tax.

What happens when a company leaves the unity?

On a company leaving the unity, article 15af CIT Act 1969 draws a line between two kinds of loss, each with its own regime.

A remaining pre-consolidation loss of the subsidiary (article 15af(1)(a)) stays with, or becomes available again to, that subsidiary itself after it leaves. That loss always belonged to the subsidiary; only its use was suspended during the unity. It revives by operation of law and needs no request.

Losses incurred within the unity that are attributable to the departing subsidiary (article 15af(1)(b)) normally sit with the parent. Only these losses are carried out with the subsidiary, and only on a joint request by parent and subsidiary (article 15af(2)) showing how much is attributable to the subsidiary. You file the request with the parent's tax return for the last consolidation year (article 15af(3)). Read more in our explainer on ending a fiscal unity.

Pre-consolidation loss and profit side by side

The same attribution logic works both ways. The table below sums it up.

The underlying principle: within the unity no more can be set off than could have been set off if the company had not been part of the fiscal unity.

Frequently asked questions

Can I offset a pre-consolidation loss against another group company's profit?

No. Through profit splitting a pre-consolidation loss only offsets the own profit of that same company. The profit of other companies in the unity does not count (article 15ae(1)(a)).

Does a pre-consolidation loss expire over time?

No. Since 1 January 2022 losses carry forward indefinitely. The annual cap of € 1 million plus 50% of profit above that does apply (article 20(2) CIT Act 1969).

What if the company has no own profit in a year?

Then there is no attributable profit that year and the pre-consolidation loss stays in full. It carries forward to a later year in which that company does make a profit.

Can I carry the pre-consolidation loss out if the company leaves the unity?

A remaining pre-consolidation loss revives with the subsidiary itself by operation of law when it leaves, with no request needed (article 15af(1)(a)). A joint request is only required to carry out losses incurred within the unity that are attributable to the subsidiary (article 15af(1) and (2), letter b).

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Pre-consolidation losses are an important consideration before you consolidate. Also read the broader benefits of a fiscal unity and the requirements for a Dutch CIT fiscal unity. Want to know whether your group can consolidate? Use our eligibility check.

Last updated: 30 June 2026. This is general information, not personalised tax advice. Have your situation reviewed by an adviser.