3.2. Net tax collection

The net tax collection is the gross revenue net of refunds paid, including adjustments with the Basque provinces and Navarre. Moreover, it corresponds, to recording on a cash basis, unlike other items such as recognised rights or taxes for the purpose of National Accounting.

193.951 billion euros were collected in 2017, 4.1% more than in 2016. Without the impact of the Immediate Disclosure of Information (SII), it would have grown by 6.4%.

Further details are provided in the following sections of the Appendix:

The differences observed in figures between the growth of net and gross income analysed in the previous section are explained by the evolution of reimbursements made. In 2017, total reimbursements grew by 3.9%. In Personal Income Tax, reimbursements reduced by 5%, and those relating to the annual tax return decreased by 7%. In Corporation Tax and Non-Resident Income Tax, reimbursements grew (2.1% and 4.5%, respectively), but less than gross income. In terms of VAT, net income (not considering the impact of the SII) grew by 7.9%, just like the gross income (reimbursements increased 9.5%, but were also affected by the implementation of the SII, which allowed for the streamlining of such; not considering the SII, the increase would have been 8%). In Excise Duties, net income increased by 2.2%, higher than the gross figures due to fewer reimbursements of the so-called 'sanitary cent'.

The set of regulatory changes that affected collection in 2017 represented a loss of 3.361 billion euros. However, if we do not take into consideration the effect of the SII, the impact would be positive, with an increase of 789 million euros. The entry into force of this new management method was accompanied by a deferral of the deadline for filing tax returns (from the 20th to the 30th of the month following the month of accrual). The consequence was that tax returns for any month that was previously accounted for in the following month, were now registered two months later in their majority, and therefore, throughout the year, for companies adhering to the new system, only 11 months of income were accounted for (the month of November which used to be taxed within the year was now incorporated into January of the following year). Along with this transitory loss of income, the new system facilitated the more streamlined execution of reimbursements, such that there was also a decrease of income here: monthly reimbursements corresponding to the last months of the year, which were previously carried out in the first months of the following year, took place within 2017. In total, both changes represented 4.150 billion euros being carried over to 2018 from 2017.

This decrease in income was partially offset by the increase in tax collection (656 million euros), thanks to changes in regulations on payment in instalments, restricting the requirements for accessing this method. As a result of these changes, there was a reduction in payment in instalments granted, and an increase in income from VAT. The impact on tax collection declined throughout the year, as it was counteracted by the lower income from previous periods.

With VAT, there was also a small loss of income (21 million euros) due to the rate cuts for certain activities, the most significant of which was live performances.

With Personal Income Tax, the regulatory changes represented increased tax collection of 1.067 billion euros. The impacts can be attributed to modifications of previous years. The 2016 tax return was filed in 2017, which included certain additional measures of the reform, which had not yet been implemented. Following these impacts, we can conclude the cost of reform, which was distributed over three years (2015, 2016 and 2017), with a total estimated amount of 7.698 billion euros.

Corporation Tax was also affected in 2017 by the reform of the direct taxation of 2015 for the same reasons as with Personal Income Tax. The impact is estimated at 618 million euros. The complete cost of the reform is 2.391 billion euros. However, the greater impacts occurred due to other measures, by Royal Decree-Laws 2/2016 and 3/2016, approved at the end of the year and which overlapped the reform, modifying some of its aspects and altering the expected effects thereof. Royal Decree-Law 2/2016, which changed how instalment payments were calculated as of the second payment of 2016, had an effect in 2017 on the total tax liability. The impact (-2.967 billion euros) is the same as was estimated for 2016 payments, but negative, given that it was simply an income advance from taxpayers. Furthermore, Royal Decree-Law 3/2016 affected both the payments (with a limit for offsetting negative tax bases: 301 million) and the charge (limits on the reduction of negative tax bases and the deduction due to international double taxation, and a new method for processing impairment: 982 million). Overall, all the measures that influenced income from Corporation Tax represented a net loss of 1.049 billion euros.

In terms of Excise Duties, the regulatory measures increased income by 184 million euros. The cause was the rate increase of the Tax on Tobacco Products (133 million) and the Tax on Alcohol and Alcoholic Beverages (35 million) of December 2016, and the change to the rate used to calculate reimbursements for agricultural diesel oil (16 million), in force since July 2017. All other impacts (fluorinated gases and judicial fees) are also a consequence of changes from previous years: with fluorinated gases, due to the progressive implementation of the tax, and judicial fees, due to the aforementioned ruling.

The main figures are shown in the following table:

1. 3.2.1. Evolution of income for Personal Income Tax
2. 3.2.2. Evolution of income for Value Added Tax
3. 3.2.3. Evolution of income for Special Taxes