Declaration of Unconstitutionality of Measures of Royal Decree-Law 3/2016

Find out how this decision affects taxpayers and the legal implications.

The Constitutional Court has declared, in a ruling dated January 18, 2024, unconstitutional several measures introduced in the Corporate Income Tax by Royal Decree-Law 3/2016, of December 2, since they were created through the figure of the royal decree-law. 

These measures include: 

1. The limits on the offsetting of negative tax bases for entities or groups with a turnover exceeding 20 million euros, 
2. The limit on the application of double taxation deductions for the same subjects; 
3. The obligation to reverse by fifths the impairments of holdings that had been deducted in previous years. 

The effects of the ruling do not apply to tax obligations that have been definitively decided by a final judgment with the force of res judicata or a final administrative decision, to unchallenged assessments or to self-assessments that have not been rectified before the date of the ruling (January 18, 2024), regardless of the date of its publication (February 20, 2024). 

Subsequently, the Central Economic-Administrative Court has ruled that the management bodies must favourably resolve the rectification requests made (applying the regulations prior to the entry into force of Royal Decree-Law 3/2016) and ordering the corresponding refunds. 

It is specified that the administrative decisions that denied the taxpayers' requests were issued in accordance with the presumption of constitutionality of the rules now annulled, so it is not an order of retroaction of proceedings in the strict sense.