Loss is generally considered a tax relief and can be carried forward to the following trading year and offset against the profit for that year. A company operating in Country A with the following tax loss rules.

i. There is no cap on the number of years for which losses may be carried forward.

ii. There is no cap applicable for the first five years of assessment following the year of assessment in which the taxpayers started a trade, business, or profession.

iii. There is no cap available where a taxpayer (whether individual or company) whose gross turnover is below $10,000,000 per annum.

iv. The deduction allowed for prior year losses (PYL) is 50 percent of the net income for the respective year.

In 2022, XYZ Limited, a company registered in Country A, had a trading profit of $5,000,000. The company started business in 1997 and its gross revenue was $25,000,000 for the tax year. Prior year tax losses are $2,000,000. 

What is its  loss relief for that year?