The fiscal contribution of the CECA Sector amounted to 5.004 billion euros in 2019, the highest figure recorded in four years
The taxes borne reached 2.610 billion euros, a 4% increase compared to 2017
Regional and municipal taxation increased by 103% compared to the previous year, mainly due to the Tax on Documented Legal Acts (IAJD) for mortgages, which amounted during the period to 302 million euros
The specific taxes on financial activity are already the leading item for the Sector, exceeding 1.000 billion euros
In 2019, the total tax rate of entities adhering to CECA rose to 43%, exceeding the 2018 rate by 5 percentage points and also surpassing the rates of 2017 and 2016
The total fiscal contribution of entities adhering to CECA reached 5.004 billion euros in 2019, according to a tax study conducted by the consultancy KPMG that takes into account the sum of borne taxes and collected taxes. This is the largest figure recorded over the four consecutive years during which this report has been prepared.
The taxes borne, that is, those that represent a cost for the entities and directly affect their income statement, amounted in 2019 to 2.610 billion euros, which signifies a 4% increase compared to the previous year and is the highest figure in the last four years. Regarding the collected taxes, those that are retained or passed on to third parties in the course of the companies’ activities, reached 2.393 billion euros in 2019. Thus, for the second consecutive year, the borne taxes exceed the collected taxes.
In relation to the borne taxes, social security contributions made by the employer remain the most significant item. The figure for this item rose in 2019 to 991 million euros, 2% more than in 2018. On the other hand, net payments for income tax amounted to 283 million euros in 2019.
It is also noteworthy to mention the collection of the Tax on Documented Legal Acts (IAJD) for mortgages, which reached 302 million euros during the period. This substantial increase is due to the legislative change that took place at the end of 2018 regarding the subject liable for this tax in public deeds for the establishment of mortgage loans. This increase has translated into a higher regional and municipal taxation, which amounted in 2019 to 534 million euros, a 103% increase compared to 2018. For its part, the unrecoverable VAT and the IDEC (Tax on Deposits of Credit Institutions) continue to represent, as in 2018, a significant tax cost for the entities of the CECA Sector, amounting in 2019 to 630 and 154 million euros respectively. These taxes – IAJD on mortgages, unrecoverable VAT, and IDEC – constitute specific taxes on the financial sector and exceed 1.000 billion euros, becoming the leading item of borne taxes.
Thus, in 2019, the total tax rate of entities adhering to CECA rose to 43%. This ratio surpasses by nearly 5 percentage points the one obtained in 2018 and is also above the rates achieved in 2017 and 2016. However, if we also consider the contributions made by entities in the CECA Sector to the Deposit Guarantee Fund (FGD), 632 million euros, to the Single Resolution Fund (FUR), 228 million euros, and the 16 million euros contributed to the Single Supervisory Mechanism (MUS), the total rate would rise to 50%.
Regarding the collected taxes, the largest amount is again related to employment. Withholdings from employees on account of the personal income tax (IRPF) represent 48% of these taxes. Specifically, the sum amounts to 1.188 billion euros compared to the 1.165 billion euros collected the previous year or the 1.178 billion euros corresponding to the 2017 fiscal year. In second place, withholdings on income from financial instruments, insurance, and pensions amounted to 688 million euros, while taxes on sales and services collected reached 277 million euros in 2019. Finally, the amounts collected by social security for employees increased by 2% compared to 2018, reaching 193 million euros.
The data collected in the report prepared by KPMG allow us to quantify and identify the main items in which the entities comprising CECA make their largest contributions to the Spanish Public Administration over the years and according to a constant methodology.
