You might be tempted to buy a zombie company which has been losing money for several years in order to take advantage of the loss carry forwards. But, it might be a good idea to do so.
In Japan corporate tax losses can be carried for nine year as long as the company has a blue tax status. But in most cases, the carried losses will not be allowed to be used.
In the past there active markets to buy and sell dormant companies with accumulated losses. However, eventually the tax law in Japan was amended to prevent this.
I have had a few clients who purchased zombie companies in Japan but were unable to use the accumulated losses. Additionally, in some cases they had to take responsibility for that company’s past negligence in filing tax returns. If a company misses its’ deadline for filing taxes two years in a row, its’ blue status will be revoked and the purchaser of that company will not be able to use the carry forward losses.