3.2.1. Evolution of income for Personal Income Tax

Personal Income Tax payments in 2017 rose by 6.4% (4.9% not accounting for regulatory changes). Withholdings for work earnings rose 3.4%, primarily due to employment creation, given that wages and the rate were practically kept stable. For all other withholdings, the most notable was the exceptional growth (42.7%) of withholdings for capital gains from investment funds, which benefited from the new withholding on subscription rights, even if the main cause for its recovery were the improvements to variable-income security trading throughout 2017. Instalment payments saw a growth of 7.6%. When it comes to the annual tax return, the increase of income against the previous year (2.001 billion euros) was a result of greater gross income (1.168 billion euros) and reduced reimbursement requests and payments (833 million).

Evolution of income for Corporation Tax

Income from Corporation Tax increased 6.8% in 2017. The tax increase took place in a context of improved profits. Instalment payments, the main component of the tax, increased at the same rate as the tax on the whole. Discounting the increase associated with Royal Decree-Law 3/2016 (301 million euros), the increase in payments would be 5.3% (and 6.8% if we do not account for other income, with an exceptional growth in 2016). Finally, we should highlight that the increase of gross income from the annual tax return (8%, with further consequences in instalment payments of SMEs who pay according to the last annual tax charge filed).