Last year, a total of 6,005,665 income tax (IRS) declarations were submitted, marking a 3.41% increase compared to the previous year’s total of 5,807,704. During the same period, the number of declarations with liquidated IRS also rose, albeit more modestly, with an advance of 2.72% to a total of 3,436,171.
This combined effect has led to a reduction in the proportion of those who effectively pay taxes among those who submit declarations. This is a result of individuals earning income within the IRS scope but not being taxed due to low income levels. The proportion dropped from 57.60% in 2022 (for the declaration submitted in 2023) to 57.22% in 2023 (for the declaration submitted in 2024).
This decline was already observed in the preceding campaign, with the Tax Authority (AT) noting that “during the triennium under analysis, the total households with liquidated IRS correspond to approximately 58.41% in 2021, 57.60% in 2022, and 57.22% in 2023.”
Between 2021 and 2022, there was a decrease of 0.81 percentage points, with another decline (of 0.38 percentage points) recorded between 2022 and 2023.
The liquidated IRS refers to the tax owed, meaning the net collection after deductions and tax benefits, “before making deductions related to withholdings at the source and advance payments.”
The liquidated IRS, as specified by the AT, is further influenced by autonomous taxations that apply to certain types of expenses in category B, which are not associated with income,
