3.1. Gross tax collection

The gross amount of tax collected comprises the effective incomes obtained in the fiscal year from both the self-assessment tax returns filed by taxpayers and from the settlements carried out by the Tax Agency. It is therefore set on a cash basis.

The total gross revenue managed by the Tax Agency in 2019 reached 266.724 billion euros, 8.570 billion euros higher than that achieved in the same period of the previous year (3.3 percent increase).

The behaviour of gross revenues, in aggregate terms and once the effect of the regulatory measures (which subtract three-tenths from the growth of gross collection) has been eliminated, is largely explained by the evolution of the aggregate tax base in 2019, whose growth was 3.8 percent, four-tenths above the increase experienced by domestic demand (3.4 percent).

The economic context in 2019 was one of slowdown. The general real indicators (GDP, affiliates) moderated their growth as the year progressed. The same could be observed in the indicators constructed from fiscal information (total sales deflated and number of salary earners in large companies and corporate SMEs), although in this case it was observed that the slowdown slowed down in the central months of the year. At the same time, consumer prices grew less than in 2018, with underlying inflation rising slightly in recent months. This same downward trend, with a certain slowdown in the final stretch of the year, was reproduced in income and was accentuated by the effect in 2019 of the increases in public salaries and pensions contemplated in the 2018 Budget (effective since July of that year). This trend was only altered by the presentation of positive quotas in the annual declarations in the middle of the year.

Looking at gross income by figure, income tax revenue increased by 6.2 percent and, if the impact of regulatory measures is eliminated, the growth would be 7.5 percent. This rate was mainly the result of the sharp increase in tax withholdings from work and gross income from the annual declaration. Private sector tax withholdings grew at a good pace, despite the slowdown in employment and the reduction in the rate for lower incomes, and public sector tax withholdings increased due to increases in public salaries and pensions. The split payments by personal companies also grew sharply (although their impact on tax growth is less), by 7 percent.

Corporate tax revenues fell by 3.3 percent, with the most notable fact being the considerable decrease in split payments (-6.3 percent), partly as a result of the sharp increase that occurred in 2018, concentrated in a small group of groups. The decline was partly offset by a 10 percent increase in revenue from the 2018 annual declaration, settled in 2019.

In the Non-Resident Income Tax, revenues also registered falls, in this case of 6.2 percent, due to the high revenues that were registered in 2018 in the annual tax return and the lower collection in the form of inspection reports.

In the case of VAT, gross receipts increased by 3.6 percent, with a somewhat larger increase in SMEs (4 percent) than in the income of Large Companies and imports (3.3 percent). . In both cases, growth moderated throughout the year, in line with the evolution of sales and inflation.

Revenue from excise taxes increased by 5.1 percent, but only thanks to the inclusion of the old regional rate in the special rate for hydrocarbon tax. Without this contribution and the other regulatory changes, revenues would have decreased by 0.7 percent. In the Tax on Hydrocarbons, revenue (without regulatory changes) grew by 0.2 percent. The growth was small because the main consumptions (petrol and automotive diesel) also increased; In addition, other products, with less weight, saw their consumption reduced. Revenue from the Tobacco Tax decreased for the third consecutive year. Tax collection was at its lowest level since 2007. The increase in revenues for the Electricity Tax was 1.8 percent, below the figures for previous years. The negative results in electricity consumption were accompanied by a fall in prices at the end of the year compared to a period of recovery in 2018. The revenue from the Coal Tax was reduced by almost half, mainly as a result of the indirect effects of Royal Decree-Law 15/2018, which eliminated the Hydrocarbon Tax for natural gas used in the generation of electricity and made coal less competitive. The intentions of the major operators to gradually abandon this form of production may also have had an effect this year. Finally, revenue from the set of taxes related to alcohol (Alcohol and derived beverages and Beer) increased by 0.9 percent, mainly due to the increase in beer consumption.

Finally, in relation to fees and other revenues (Chapter III), gross revenues grew by 10.2 percent, thanks to the good results of the fees and, in particular, to the increase in revenues from the Fee for the use of inland waters for the production of electric energy, with a low performance in 2018 due to the drought in 2017 (the fee is settled the following year).

Table No. 12. Total gross tax collection New window (Annex).