The General Treasury of the Republic (TGR) reported that the collection of Territorial Tax, known as real estate contributions, increased by 9.68% in the period January-July 2024, compared to the same period last year.
The Territorial Tax is collected by TGR and directly benefits the 345 municipalities in the country. In turn, this tax is the main source of income for the Municipal Common Fund (FCM), an instrument that in turn constitutes an important source of financing for local governments, especially for the smallest municipalities.
“The Municipal Common Fund is a means of redistributing financial resources from the highest-income municipalities to the lowest-income municipalities in the country,” explained the General Treasurer of the Republic, Hernán Nobizelli. He added that the other sources of financing for this Fund are fees for circulation permits, commercial patents, vehicle transfers and fines.
In the period January-July 2024, the resources accumulated in the FCM totaled $1,493,780 million ($1.49 trillion), a figure that represents 64.2% of the total accumulated in 2023.
These results are contained in the Quarterly Contributions Report (ITC), which TGR publishes after the close of each quarter in which this tax is due to be collected.
Treasurer Nobizelli said that this publication responds to the institutional transparency policy, which seeks to provide detailed information on a regular basis on a tax that is of great importance to citizens and especially for the financing of the 345 municipalities in the country.
Sustained rise
The second Quarterly Contributions Report shows that in the period January-July 2024, the collection of Territorial Tax showed a sustained increase compared to the same period in 2023. The total accumulated in the first seven months of the year reached a collection of $1,337,170 million, a figure higher by 9.68% compared to the same period in 2023.
In May and June 2024, there were decreases in tax collection, compared to the same months in 2023, of -25.5% and -6.69%, respectively. However, the significant increases recorded in the period January-April 2024, plus the large increase observed in July 2024 (82.75%) explain the increase of 9.68% in the first seven months of this year.
Collection by Territorial Tax
Nominal figures in millions $
Months | 2023 | 2024 | Monthly variation % |
January | 52.674 | 58.564 | 11,18 |
February | 37.228 | 48.410 | 30,04 |
March | 43.452 | 52.619 | 21,10 |
April | 490.756 | 570.623 | 16,27 |
Mayo | 139.448 | 103.884 | -25,50 |
June | 368.346 | 343.686 | -6,69 |
Julio | 87.216 | 159.383 | 82,75 |
August | 46.596 | ||
September | 413.150 | ||
October | 125.893 | ||
November | 392.051 | ||
December | 84.540 | ||
Accumulated | 2.281.350 | 1.337.170 |
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