He allocated 51 of every 100 euros of his profit before taxes to the Treasury
MADRID, 19 Oct. (EUROPA PRESS) –
The large Spanish bank contributed 6,439 million euros in taxes paid to the public coffers in 2021 in Spain, which represents 51% of the profits before taxes recorded in the country, according to a study by PwC Tax
The 6,439 million euros correspond to the taxes that the entities bear, although if those taxes that they also collect are added, the sector contributes a total of 11,599 million euros.
This total tax contribution represents 2.35% of net tax revenue and Social Security contributions, while its weight in National Production is 1.6%.
The main item of taxes borne -that is, of the 6,439 million euros– is Social Security payable by the company, the amount of which amounts to 1,931 million euros (30% of the total taxes borne), followed by Non-deductible input VAT, which represented more than 1,611 million euros during 2021 (25%). In this regard, the study states that non-deductible input VAT “represents a cost for banking, unlike other sectors.”
As for Corporation Tax, the sector paid around 1,530 million euros, 24% of the total levies borne. PwC Tax
Likewise, payments for the Tax on Documented Legal Acts amounted to 540 million euros (8%) and for the Tax on Deposits of Credit Institutions to nearly 292 million euros.
As indicated above, banks also collect taxes for the Tax Administration from their customers, employees, suppliers and shareholders. The most relevant item of taxes collected in 2021 corresponds to withholdings on income from work, which amounted to 2,489 million euros, which represents 48% of the total collected by the sector.
Likewise, the withholdings on movable capital income to residents and non-residents stand out, representing 1,491 million euros (29% of the total). They are followed in relative importance by the amount collected by VAT, a net position whose amount is 471 million euros (9%), and Social Security payable by the employee with a total amount of 379 million euros (8%).
On the other hand, the report includes various metrics to measure the value of the banking contribution. For example, it uses the distributed value that allows knowing “how value is added to society as a result of economic activity, through wages and salaries paid to employees, shareholder remuneration and to the Public Treasury through taxes”.
In this sense, 58% of the value distributed by the main banking groups has been paid into the Public Treasury for taxes (supported and collected) that have been generated as a result of their economic activity.
On the other hand, the main Spanish banking groups generated more than 135,000 jobs in Spain, paying an average salary of 65,707 euros.
During 2021, they contributed a total of 4,798 million euros through Social Security, paid by the employer and the employee, and withholdings on earned income, which on average represented a contribution of 35,327 euros in taxes paid per employee.
Finally, in addition to the total tax contribution, the report highlights other regulatory payments made by the main groups in the banking sector in Spain, which during the 2021 financial year amounted to a total of 1,641 million euros, including the contribution made as contributions to the Credit Institutions Guarantee Fund, which in 2021 amounted to a total of 1,028 million euros. This figure represents 63% of the total of these other regulatory payments.
