Thursday, 04 August 2022 03:30

Ministry of Finance refunds more than US$21 million in income tax to 166 thousand taxpayers

Written by Evelyn Alas

The management of public resources focused on the welfare of the population has allowed keeping commitments up to date.

In this line, the Ministry of Finance (MH) informed that they have made effective the refund of Income Tax (ISR) for 166 thousand 554 taxpayers.

As a result, they have disbursed US$21.84 million for refunds, which represents 54% of the estimated amount to be used for refunds.

When a taxpayer has filed his income tax return, the system indicates whether he has to complete his contribution to the tax authorities ("to be paid") or whether it is the tax authorities that must compensate him for part of the withholdings made in excess ("to be returned").

This happens because there are many details in the calculations corresponding to the income tax withholdings and in this process divergences accumulate between the accounts of the MH, the employers or the taxpayer itself.

During the current administration, ISR has achieved an increasing share of total tax revenues. This change indicates that, through a new way of managing the collection and with an effective Anti-evasion Plan, the tax system is becoming more progressive.

The MH consigned that, during the period from january to june of this year, the ISR has made a contribution of US$1,719.7 million to revenues, equivalent to a 32.5 % increase compared to the same months of 2021. This is also an amount that exceeds by more than US$200 million the target that had been established in the budget for collection at this time.

Declarations, in the aforementioned period, have contributed US$708.7 million, a growth of 49.7% compared to 2021 and, in relation to the budget target, is US$144.5 million more than had been estimated.