Tax Revenue monthly report

The Monthly Tax Collection Report (IMRT) shows the level and monthly evolution of tax revenues managed by the Tax Agency (AEAT) on behalf of the State, the Autonomous Regions and the Local Authorities of the Territory of Common Fiscal Regime.

TRMR tax revenue is presented as cash and net yield (gross receipts minus refunds).

Tax Revenue, April 2023

In April entered the usual monthly self-assessments (matching with March accrued revenue, except in VAT, whose cash in April comes mainly from February accruals), the quarterly self-assessments from SMEs (payroll withholdings, VAT and payments on account) and the first instalment in Corporation Tax.

Total Tax Net Revenue scaled to €34.5 billion in April, 10.8% above the same month in the prior year. Gross receipts lifted by 9.4%, while the amount of refunds paid expanded just by 3.3%.

Total collection grew up by 5.5% in the first four months of the year (7.3% the gross receipts and 16% the refunds). Total tax revenue in homogeneous terms enlarged by 6.2%, more than two percentage points above the advance recorded up to March (4%). The jump in homogeneous revenue was due to the enhancing performance scored in April, one of the months with highest collection across the year.

After the submission of the first quarter of the year by SMEs, three factors need to be remarked. The first of them is the steady increase pace seen in payroll withholdings (11.1%), despite the impact (focused mainly on small businesses and pensions) of the Personal Income Tax effective tax rate cut on the lowest incomes. The second one is the strong growth in Corporation Tax first instalment, particularly in Groups, due in part to the change in the way the companies belonging to these groups calculate the offset of losses. In the third place is the upswing seen in gross VAT, especially in SMEs’ first quarter, compared to 2022 last quarter, once amended the negative effect from the new rules passed about deferments and despite the VAT rates cut on groceries. There were also other elements, not related to the economic background, that are pushing up total collection: the new tax on plastic packaging and the effect of the comparison with a period in 2022 affected by hauliers strike (which hit mainly Fuel Excise Tax).

Next release on June 30th (May report)