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BIR Revenue Regulations No. 25-2020:Rules and Regulations Implementing Sec. 4 of Republic Act No. 11494,otherwise known as the “Bayanihan to Recover as One Act” Relative to Net Operating Loss Carry-over( NOLCO) under Section 34 (D) (3) of the NIRC as amended

Posted by on February 18th, 2022

The regulations shall cover the deduction from Gross Income of the Net Operating Loss Carry – Over (NOLCO) incurred by businesses or enterprises for taxable years 2020 and 2021 pursuant to Sec. 4 (bbbb) of RA No. 11494.

The period of entitlement to deduct the net operating loss incurred for taxable years 2020 and 2021 is 5 years. 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. The NOLCO shall be separately shown in taxpayer’s income tax return while the unused NOLCO shall be presented in the notes to the Financial Statements showing the taxable year in which the net operating loss was sustained or incurred and any amount thereof claimed as NOLCO deduction within the five consecutive years immediately following the year of such loss. Failure to comply with this requirement will disqualify the taxpayer from claiming the NOLCO.

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Attached herewith is a copy of the Revenue Regulation for your reading reference. If you need any assistance relating to this BIR issuance, you may email us at

Click to access RR%20No.%2025-2020.pdf