MADRID: The Council of Ministers has approved Royal Decree-law 3/2016, of 2 December, that introduces different measures in order to comply with the objectives established by the European Union in the Council Recommendation of 21 June 2013 and mitigate the negative effects of an excessive government deficit in the Spanish Economy. These are the most important measures approved for Corporate Income Tax (CIT) payers:
Once again, the limit on the offsetting of Tax Losses is modified. For fiscal years starting on or after 1 January 2016, Tax Losses of previous years can be offset up to the 60% (70% for fiscal year 2017 onwards) of the taxable base, except for “Large Enterprises” (CIT payers with an annual net turnover of the previous 12 months to the beginning of their fiscal year of €20 million or higher).
