Income tax collection increased 12.5% ​​annual in October; five years without growing in double digits

The collection of Income Tax (ISR) registered 160,057 million pesos in October, with which it grew 12.5% ​​annually, in real terms, revealed data from the Ministry of Finance and Public Credit (SHCP).

The foregoing also confirmed that ISR collection in said month grew again to two figures after five years.

The last time double-digit annual growth was observed was in October 2016 when the increase was 20.1% in real terms.

Meanwhile, income tax collection between January and October registered 1.9 trillion, with which the annual growth was 14.3%, in real terms, according to figures from the SHCP.

In this sense, Janneth Quiroz, deputy director of economic analysis at Monex, told El Economista that the accumulated growth has presented the best annual record since 2015.

“It has to do (the increase), to a large extent, with the efforts of the Tax Administration Service (SAT) to reduce tax evasion and avoidance because we have not had a tax reform (in this six-year term) that explains this double-digit increase (…) By not having an increase in taxes, the taxable base is increasing,” Quiroz explained.

For its part, the Tax Administration Service has informed that the tax that presents the best performance so far this year is the ISR derived mainly from the increase in company income and the growth of formal employment.

earnings and salaries

The Tax Administration Service reported that the ISR collection on the profits of legal entities and individuals had an annual increase of 28.8% at the end of October, registering 928,465 million pesos.

The collection of ISR on the profits of legal entities accounted for 898.869 million pesos between January and October of this year, which meant an annual increase of 30 percent. While the collection from individuals registered 29,597 million pesos, an annual contraction of 1.1 percent.

While the ISR collection for wages and salaries totaled 832,535 million pesos between January and October, an annual increase of 7.2% in real terms.

santiago.renteria@eleconomista.mx