SYNTHESIS INE@COVID-19, 18 May-2021

May . 18 . 2021 SYNTH SIS IN @ COVID-19 www.ine.pt page 6/23 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt Tax burden accounted for 34.8% of GDP in 2020 In 2020, the tax burden decreased by 4.7% in nominal terms to EUR 70.4 billion, which corresponds to 34.8% of GDP (34.5% in the previous year). Direct tax revenue decreased by 3.7%, reflecting: • A 17.9% reduction in corporate income tax (IRC) revenue; • A 3.1% increase in individual income tax (IRS) revenue, due to measures to protect employment and wages in the context of the pandemic. Actual social contributions maintained a positive rate of change (1.2%), for similar reasons to those that determined the increase in IRS revenue. Indirect taxes, with a decrease of 9%, were the component that contributed most to the reduction in tax revenue, due to the following reductions: • Motor vehicle sales tax (ISV): -39.8%; • VAT: -10.6%; • Tax on oil and energy products (ISP): -9,4%; • Local government real estate transfer tax (IMT): -6,1%; • Stamp tax: -4.1%; • Local government real estate tax (IMI): -1,7%; • Excise duties on tobacco: -0.6%. Evolution of the tax burden between 1995 and 2020 (% of GDP) 29.2 29.9 29.8 30.1 30.8 30.9 30.7 31.1 30.1 30.2 30.9 31.4 31.9 31.7 29.8 30.4 32.2 31.7 34.0 34.2 34.4 34.1 34.1 34.7 34.5 34.8 29.0 30.0 31.0 32.0 33.0 34.0 35.0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 % of GDP