Spain was the country of the Organization for Economic Cooperation and Development (OECD) where the fiscal pressure registered a greater increase during 2020 as a consequence mainly of the collapse of the GDP registered due to the Covid pandemic, as reported by the institution.

According to data from the annual report on tax revenue published this Monday by the 'think tank' of advanced economies, the relationship between the weight of taxes and Social Security contributions with the size of the economy increased in the case of Spain in 1.9 percentage points, the largest rise among the 38 OECD member countries, although data was only available for 36 economies.

Behind Spain, the largest increase in tax pressure among OECD countries in 2020 corresponded to Mexico, with an annual increase of 1.6 percentage points, while the largest drop was recorded in Ireland, with a decrease of 1 , 7 percentage points, followed by Chile (-1.6) and Norway (1.3).

A total of 20 of the 36 OECD countries for which data were available registered an increase in the tax burden in 2020, while in 16 countries a decrease was observed, including 13 members where the decrease was less than a percentage point.

In the case of Spain, the OECD explains this upward trend in the tax burden because the country "experienced the largest drop in nominal GDP and the smallest drop in nominal tax revenue."

Thus, in 2020 the tax burden in Spain stood at 36.6%, compared to 34.7% in 2019, thus exceeding the 33.5% average in the OECD, where the weight of taxes increased one tenth with respect to the previous year.

Thus, since 2000 the tax burden in Spain has increased by 3.6 percentage points, which is six times more than the 0.6% increase observed on average among OECD economies.

Despite exceeding the OECD average, Spain ranked fourteenth among the 36 countries of the organization whose data were available, when in 2019 it ranked twentieth.

On the other hand, taking the year 2019 as a reference, the OECD estimates that the greatest weight in the country's tax revenue corresponded to Social Security contributions, with 35.3%, compared to the average of 25.9% for the OECD, while personal income taxes accounted for 22.7%, compared to 23.5% on average in the organization.

In the case of corporate tax, the weight of this tax in tax collection in Spain was 6%, compared to 9.6% on average for the OECD, while the contribution of property taxes in Spain represented the 7.1% of revenue, compared to 5.5% of the OECD average.

On the other hand, the contribution of VAT stood at 18.7% in Spain, below the 20.3% of the international organization and the weight of other taxes on consumption was 10.2%, compared to 12 , 3% of the OECD average.

According to the criteria of The Trust Project

Know more

  • Spain

  • GDP

  • Social Security

  • Coronavirus

  • Mexico

  • Ireland

  • chili

  • Norway

  • Covid 19

  • Taxes

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