July 14, 2020

Measures to alleviate COVID-19 decrease revenue by 6,818 million

The Tax Agency calculates that the tax measures put in place to mitigate the economic effects of the coronavirus epidemic reduced the collection by 6,818 million euros.

The April tax collection report published this Friday by the Agency details that most of this impact, 4,540 million, is due to the delay in the presentation of the liquidation of corporation tax after the period for SMEs was extended fulfilled this obligation from April 20 to May 20.

A second impact is the possibility that small and medium-sized companies (SMEs) and the self-employed postpone tax debts for six months, which according to the Agency has reduced income by 2,278 million.

In global terms, the collection for April was 14,213 million, 32% less than in the same month of 2019, data that is affected by various calendar distortions, so the Agency limits the drop in revenue to 8.4 % in homogeneous terms.

This homogeneous comparison implies a reduction of income of 0.2% in the first four months of the year, mainly due to the drop in company tax (25.5%), since the Personal Income Tax (Personal Income Tax) it goes up by 3% and the value added tax (VAT) by 1.1%.

However, in gross terms, income from personal income stood at 5,343 million in April, 13% less; corporate tax, 1,572 million, 69.5% less, and VAT, 4,796 million, 29.2% less.


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