El Royal Decree 3 / 2016 He has been incorporated in Article 3 a series of modifications Corporation taxWhich shall apply from the 1 2016 January.

Modifications applicable to large companies (previous year invoicing more than 20 M euros):

The following sets new limits for deductibility:

The Act Corporation tax provides that credit impairment provisions for bad debts of unrelated debtors, not owed by public entities that are not tax deductible under the conditions set out in Article 13.1 a) of the Act Corporation tax, as well as the provisions or contributions to social security and pre-retirement systems, which have not been deductible, and which have generated deferred tax assets, will be included in the tax base with the limitation of 70% of the positive taxable base prior to integration, the application of the capitalization reserve and the compensation of negative tax bases. Royal Decree Law 3 / 2016 modifies this limitation of 70%, establishing new percentages:


Business figure year n-1 limit applicable
Less than 20 M euros 60% of previous BI to rva capitalization and compensation BIN
20 60 between M and M euros 50% of previous BI to rva capitalization and compensation BIN
Less than 60 M euros 25% of previous BI to rva capitalization and compensation BIN

The Act Corporation tax It sets a limit for offsetting tax losses that can be offset with positive income of subsequent periods with the limit of 70% of the tax base prior to the application of the capitalization reserve and compensation of negative tax base itself. This limit was reduced to 60% for periods beginning on 2016 and the Royal Decree 3 / 2016 again changes the percentage of compensation applicable:


Business figure year n-1 limit applicable
Less than 20 M euros 60% of previous BI to rva capitalization and compensation BIN
20 60 between M and M euros 50% of previous BI to rva capitalization and compensation BIN
Less than 60 M euros 25% of previous BI to rva capitalization and compensation BIN

In any case the compensation to EUR 1 M is maintained.

El Royal Decree 3 / 2016 It establishes a joint limitation of 50% of the total tax liability of the taxpayer for the following deductions:

  1. Deduction to avoid juridical double taxation: tax borne by the taxpayer.
  2. Tax credit to avoid international double taxation of dividends and profit shares.
  3. Satisfied taxes for imputed income or dividends from income attributed by international fiscal transparency regime.
  4. Transitional arrangements in the Corporation tax deductions to avoid double taxation.

Changes apply to all companies:

The Law 16 / 2013 repealed, with effects for the fiscal years started from 1 of January of 2013, the article 12.3 of the LIS, eliminating the possibility of deducting the impairment of the shares in the capital of both resident and non-resident entities. . This rule also established that losses obtained through a permanent establishment abroad were not fiscally deductible, except in case of transmission or cessation of activity.

16 Transitional Provision of Act Corporation tax It establishes a transitional regime for the reversal of impairment losses of securities representing the equity of entities and reversing losses of a permanent establishment which were tax deductible in periods prior to 2013. Regarding the reversal of these impairment losses that transitional provision stated:

  1. Unlisted securities: integration into the tax base will be made in the tax period in which the book value of equity at year end exceeds the start, taking into account the contributions or refunds of contributions made on it.
  2. Values ​​listed companies: Reversal of loss shall in taxable Corporation tax the tax period in which the recovery of its value in the accounting field occur.

El Royal Decree 3 / 2016 He has introduced the following new reversal of impairment losses:

  • a minimum amount for the reversal of impairment losses of securities representing the equity of entities that have been tax deductible in tax years beginning before January 1 2013 of states. The integration is performed at least in fifths taxable each of the first five years starting from January 1 2016.
  • If there has been a reversal of a higher amount established in the Transitory 16 by applying general procedure, the outstanding balance equally between the remaining periods will be integrated.

In case of transfer of securities during the periods referred, to reverse the outstanding amounts will be included in the taxable period in which the transfer takes place.

Important note: The December 15 2016 has appeared informative note on the website of the Tax Agency, which indicated that changes in corporate income tax shall not apply in the third installment payment that must be entered in December 2016


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Xavier Vales DiG barcelona Lawyers tax

Xavier Vales

DiG Lawyers

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