According to the provisions of the Company Law on making up losses, a company can make up losses with statutory common reserve, but only after the profits of the current year are made up. Moreover, the company's capital reserve can't make up for the loss. In terms of time limit, the maximum time limit for making up losses is five years, and these five years, whether they are profits or losses, are regarded as the actual years of making up.
Legal basis:
Detailed Rules for the Implementation of the Provisional Regulations on Enterprise Income Tax in People's Republic of China (PRC) Article 28 The time limit for making up losses stipulated in Article 11 of the Regulations for the Implementation of the Enterprise Income Tax Law in People's Republic of China (PRC) refers to the taxpayer's loss in a certain tax year, which is allowed to be made up by taxable income in subsequent years. If it is made up in 65,438+0 years, it can be made up year by year, and the longest time limit for making up is not more than 5 years. Whether it is a profit or a loss within five years, it should be regarded as the actual compensation period. When an enterprise's income in the tax year can make up for the total losses in the first five years, regardless of whether all the losses in the first five years have occurred, the income in this year can only make up for the losses in the first five years.