Yesterday the plenary of the Constitutional Court declared the unconstitutionality of Royal Decree-Law 3/2016, through which significant measures were introduced for the taxation of companies and tax groups. Specifically, the measures introduced in 2016 affected the following aspects of the Corporate Income Tax (CIT) settlement:
• Restrictions regarding the limits applicable to big companies for the set-off for the negative tax bases and deferred tax assets.
• The introduction of a new limit for big companies applicable to deductions to avoid double taxation.
• The obligation to automatically include impairments of shareholdings that had been deducted in previous years in the taxable base.
• Modification of the treatment of negative income derived from the transfer of shares in other entities.
This ruling will have an only impact on those taxpayers who had requested the rectification of their CIT self-assessments for previous tax years before the decision of the Constitutional Court was published.
For more information, you can consult the complete press statement from the Constitutional Court (in Spanish) HERE.