Spain: Several corporate tax law measures declared unconstitutional (Constitutional Court decision)
The Constitutional Court declared several corporate tax law measures introduced by Royal Decree-Law 3/2016 unconstitutional.
Several corporate tax law measures declared unconstitutional
The Constitutional Court on 18 January 2024 declared several corporate tax law (IS) measures introduced by Royal Decree-Law 3/2016 unconstitutional, including:
- Introduction of limits on the compensation of negative tax bases (BINs) and the application of deductions to avoid international double taxation
- Reversal in fifths of impairments in the value of shares that had been considered deductible for IS purposes between the years 2002 to 2013
The court’s decision is consistent with decision of the National Court declaring Royal Decree-Law 2/2016 unconstitutional.
Read a January 2024 report in Spanish [PDF 547 KB] and English [PDF 507 KB] prepared by the KPMG member firm in Spain
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