The companies that make up the IBEX 35, the main stock market indicator in Spain, contributed 52,557 million euros to the public coffers in 2022, 24% more than the 42,557 million in 2019, thus exceeding the volumes prior to the pandemic.
Likewise, the tax contribution of these business groups to the Treasury grew by 39% compared to 2021, when they paid 37,717 million, a figure still below the 2019 collection, according to a report presented on Monday by the PricewaterhouseCoopers (PwC) consultancy.
This upward trend is due to the increase in corporate profits, corporate sales – up 38% compared to the previous year – and the effect of changes in corporate tax, with a minimum levy of 15% for all companies with a turnover of more than 750 million a year.
The taxes borne by these companies (those that have entailed a cost for the entity, such as social security, profits, property and environmental taxes, among others) amounted to 16,269 million euros, 45% of the profits obtained by the companies.
Changes in corporate tax
The Spanish Confederation of Business Organisations (CEOE) highlights the increase in the contribution from profit tax, at 6,534 million, 15% more than in the previous year, due to the modification of corporate tax.
This increase means that this tax represents 6.4% of total revenue in Spain, higher than in Germany (5.4%), France (5.1%) and Italy (4.8%).
“It is higher than in other parts of Europe, which limits the arrival of investment in the country and penalises the situation of companies”, said Enagás’ tax director, Íñigo Cristóbal, during the presentation of the report.
On the other hand, the taxes collected by companies from their customers, employees, suppliers and shareholders, which subsequently go to the tax authorities, amounted to 36,288 million, including those on products and services (21,482 million), employment (6,496 million) and the environment (5,547 million).
If the taxes borne and collected are added together, IBEX 35 companies contributed 60% of their tax value to the Treasury.
More than 13% of total tax collection in Spain corresponds to IBEX 35 companies.
The PwC report indicates that the tax contributions of IBEX 35 companies account for 13.18% of the total revenue collected by the Public Treasury – including Social Security – and exceeds the contribution in 2019.
The contributions of the main business groups have increased by 10,000 million euros in the last four years, more than 9,000 million in taxes collected and 847 million in taxes borne.
This increase stems from economic growth, inflation generated by the rising cost of energy and the problems caused by the slowdown in the global supply chain.
IBEX 35 companies are calling for a more flexible tax system, more defined tax instruments – especially in the case of the environment – and greater recognition by the state in the case of compliance with tax transparency, as well as a reduction in budgetary expenditure.
“Poor taxation can destroy the country’s industrial fabric”, said Repsol’s corporate director, Luis López-Tello.