Unconstitutionality of several provisions introduced by Royal Decree-Law 3/2016

The Constitutional Court in its Judgment of January 18, 2024 declares the unconstitutionality and nullity of the Fifteenth Additional Provision and section 3 of the sixteenth transitional provision of the LIS, as amended by article 3. First, sections One and Two of Royal Decree-Law 3/2016, of December 2, adopting measures in the tax field aimed at the consolidation of public finances and other urgent measures in social matters, which regulated:

• The establishment of special limits on the offsetting of negative tax bases and the allocation of provisions for impairment of credits and other assets and certain provisions for taxpayers whose INCN is at least 20 million euros during the 12 months prior to the date on which the tax period begins.

• The introduction of a new limit for the application of deductions to avoid double taxation also for large companies.

• The obligation to reverse within a certain maximum period of time the impairments deducted in previous fiscal years by taxpayers.