3.2.1. Evolution of income for Personal Income Tax

Income from personal income tax grew by 4.9 percent in 2019, although without the regulatory and management changes that affected the tax, the growth would have been 8.2 percent. The two components that best explain the evolution of the tax are the withholdings from work and the fee to be paid from the annual declaration.

Income from withholdings on income from work and economic activities grew by 5.4 percent in 2019, 6.5 percent if the impact of regulatory changes is eliminated. In general, the trend was towards moderation (until the middle of the year the accumulated growth was 5.9 percent), but with different phases and with different intensity in the private and public sectors. In the private sector, income increased by 5 percent while in the AA. Administrations the rate was 6.5 percent.

Regarding the results of the annual declaration (corresponding to the 2018 financial year, settled in 2019), income grew by 14.1 percent, despite the fact that some of the measures (extension of family deductions and refund of the withholdings made to maternity benefits in 2018) acted negatively (without them the growth of these incomes would have risen above 18 percent.

As for the rest of the concepts, four elements stand out: the growth of installment payments at a rate similar to that recorded in the previous two years (7 percent); the increase, for the second consecutive year, in withholdings for capital income (4.2 percent), despite the new decrease in interest on bank accounts; the stabilization of income from withholdings on capital gains from investment funds after the sharp decline last year; and the reduction in Lottery Tax revenue (-15.2 percent), most of which is not justified by the raising of the tax threshold.

Evolution of income for Corporation Tax

Income from Corporate Tax decreased by 4.4 percent in 2019 due to the extraordinary refunds made; Without them, collection would have increased by 0.5 percent. Along with the aforementioned refunds, the most notable fact was the considerable decrease in installment payments (-6.3 percent), a decrease that is concentrated in the second payment and is explained, fundamentally, by the exceptional behavior of five large groups . The fall was offset by the 10 percent growth in income from the 2018 annual declaration, settled in 2019, and by the lower amount of returns made in 2019 corresponding to the 2018 campaign.