Tax collection grew 36% in December 2018

Tax revenues grew by 36% in December 2018, reaching $319.921,5 million. This is the highest result since the record set last October.

 

Last month's increase was helped by the additional export duty and the rise in the exchange rate. On the other hand, it was attenuated by several factors: one less business day of collection of income related to foreign trade and current accounts, lower income from import duties and customs VAT, a drop in imports and a reduction in the VAT rate for imports.

IVA. Last year, net VAT increased by 37,9% (49,4% in the tax bracket and 9,5% in the customs bracket); Income Tax 39,1%; Tax on debits and credits in current accounts 32,6%; Social Security 22,5%; Export duties 325% and Import duties 40,5%.

 

Meanwhile, in the entire 2018 fiscal year, tax revenues grew by 31,2%, amounting to $3.382.644,5 million.

 

Last year, net VAT increased by 44,3%, with a variation of 41,6% in the tax bracket and 47,8% in the customs bracket.

 

Among the factors that boosted this VAT result are a lower compensation for other taxes compared to 2017, greater collection of customs VAT due to the rise of the dollar and the income from the tax on digital services, which amounted to $1.400 billion last year.

 

Earnings increased the 33,7%The increase was based on higher income from the balance of sworn declarations and advances from companies and individuals (due to the increase in their determined taxes) and higher withholdings. In particular, the income of approximately $7.100 billion from subjects residing abroad was recorded for the purchase and sale of shares and securities or company securities, which were not carried out through stock exchanges or stock markets.

 

The increase in this tax was mitigated by the increases in personal deductions for the 2018 fiscal period, the tax scale and the entry of one less advance payment (the one corresponding to individuals in 2018 will be entered this year).

 

Social Security, revenues increased by 24,7%, with a rise of 26,2% in personal contributions and 24,3% in employer contributions. In this case, the increase in the distribution of payment facilities and the modification in the distribution method had a favorable impact; meanwhile, the convergence to the unification of the rate and the new non-taxable minimum established by the tax reform reduced the year-on-year variation.

Debits and credits In current account, the collection grew 35,6%, with four fewer business days for settlement than the previous year. If the same number of business days had been available, the year-on-year variation would have been 37,8%.

 

Foreign trade, due to the rise in the dollar recorded in 2018, import duties increased 51,7% and export duties a 72,7%.

 

In particular, revenue from withholding taxes was boosted by the implementation of the additional export duty, which contributed some $32.900 billion. The monthly reduction of export duties applicable to the soybean complex by 0,5% per month since January of last year, which was suspended with the application of the additional export duty, had an opposite effect.

 

The personal property tax fell by 34,5% because the assets incorporated through the tax amnesty law that had not received advance payments were paid in 2017, due to the increase in the non-taxable minimum and the decrease in the rates for the 2018 fiscal period. 

 

The benefit granted to compliant taxpayers and the receipt of the fourth advance payment for the 2018 fiscal year, which will be made in 2019, also had an impact.