3.2.1. Evolution of income for Personal Income Tax

Tax withholdings from employees increased by 6.5 percent, with a 7 percent increase in the private sector and a 5.8 percent increase in taxes on salaries and pensions paid by the Public Administrations. The annual declaration contributed more than 1 billion to the growth of the PIT In 2018, gross income increased by 11.3 percent (due to the significant growth in the previous year of income not entirely subject to withholding taxes and payments on account), while refunds grew by only 1.1 percent. Split payments and withholdings on capital gains grew by more than 6 percent. On the negative side, withholding taxes on capital gains in investment funds fell by 20 percent, as a result of the high levels reached in 2017 and the poor results in the secondary securities markets.

Evolution of income for Corporation Tax

In 2018, corporate tax revenues increased by 7.3 percent, with high growth in instalment payments (11.7 percent) due to the good performance of profits, and in refunds (14.1 percent), linked to the declarations and settlements of previous years and the advance in the rate of completion. The evolution of the instalment payments was marked by the strong increase in the second payment on account, which was concentrated in a small number of groups, while in the rest of the groups and Large Companies the growth was more modest (around 4 percent) and consistent with the evolution of profits and the taxable base of the payment.