Most companies will pay reduced taxes this year compared to what they paid in 2020 on their 2019 earnings, according to data from the first returns filed and processed, while many more will see losses for the first year of the pandemic .
The health crisis and prolonged lockdowns caused company sales to shrink, with around eight out of ten companies reporting lower profits or losses. Treasury data shows that around 800,000 companies have suffered a financial blow from the pandemic.
The state budget originally provided for corporate tax revenues of 4.48 billion euros, which were later to be revised to 2.6 billion euros; Now the expected inflows of companies into the state coffers amount to only 2.3 billion euros, after the decision to reduce the income tax contribution this year by around 900 million euros.
The 2018 corporate result, which led to taxes of 4.36 billion euros, was followed by taxes of 3.4 billion euros in 2019, before a further 1.1 billion euros was lost this year for taxes to be collected. That means corporate tax revenue this year will be just under half of 2019 in terms of corporate earnings in 2018.