3.2.1. Evolution of income for Personal Income Tax

Personal Income Tax revenues in 2016 remained practically in line with 2015 (0.1%). Without taking into account regulatory changes, Personal Income Tax revenues would have increased by 5.8%. Withholdings on work and economic activities recorded a modest increase (0.8%), which goes up to 4.8% if we include the net cost of the regulatory changes, a similar increase to the one in wages and pensions. Payments by instalment increased by 12.9%, although 3.6 points are due to the increase in income caused by new requirements to use the simplified regime and the resulting transfer of taxpayers who were previously using the direct estimation model. On the downside, we must highlight the drop in income on withholding taxes, funds and leases (a portion of which is also due to the aforementioned tax reform) and the existence of a more negative tax difference than last year (income was up, but refunds were up even more).