Corporate income tax in 2016

Abstract

Corporate Income Tax Law (Law 27/2014 of 27 November) has undergone, due to collection needs, two major changes during 2016 by way of Royal Decree 2/2016, of 30 September, which introduces measures aimed at reducing public deficit and Royal Decree 3/2016, of 2 December, which provides tax measures for the consolidation of public finances and other urgent measures in the social field.

All measures share a common feature, i.e. they hinge on net operating losses, by preventing its registration, limiting its carryforward capacity or enforcing its reversal; they are all analyzed by the author in detail, who concludes that it might have been more convenient, considering the existence of a collection target, to moderate its intensity and accompany them with other measures such as the limitation of the capitalization reserve (i.e. tax incentive granted for the equity increase of companies).