# Table VI: Impact of Withholding Rate Increase

||(1)|(2)|(3)|(4)|(5)|(6)|
|---|---|---|---|---|---|---|
||Pre-Reform Mean<br>Treated, 99.9th pctile|Pre-Reform Mean<br>Treated, 99th pctile|Basline<br>Raw Data|Winsorized<br>99.9th pctile|Winsorized<br>99th pctile|Winsorized<br>95th pctile|
|Total Sales Reported|71560.380|51664.220|0.200|0.042<sup>_∗_</sup>|0.002|0.003|
||(996.541)|(329.431)|(0.293)|(0.018)|(0.008)|(0.006)|
|Sales Tax Collected|5114.702|3782.567|0.030|-0.008|-0.012|0.011|
||(59.499)|(19.500)|(0.023)|(0.019)|(0.008)|(0.006)|
|Input Tax Credits|4309.865|3192.292|-0.087<sup>_∗_</sup>|-0.068<sup>_∗∗_</sup>|-0.038<sup>_∗∗∗_</sup>|-0.036<sup>_∗∗∗_</sup>|
||(43.137)|(14.898)|(0.041)|(0.022)|(0.010)|(0.006)|
|Import Credits|1509.174|882.316|-0.196<sup>_∗_</sup>|-0.120<sup>_∗∗∗_</sup>|-0.024|-0.076<sup>_∗∗∗_</sup>|
||(22.230)|(7.134)|(0.081)|(0.036)|(0.020)|(0.017)|
|Local Purchase Credits|2752.913|2064.536|-0.559|-0.055<sup>_∗_</sup>|-0.029<sup>_∗∗_</sup>|-0.031<sup>_∗∗∗_</sup>|
||(27.976)|(8.237)|(0.546)|(0.023)|(0.010)|(0.006)|
|Gross Tax Liability|844.611|548.881|0.096|0.160<sup>_∗∗∗_</sup>|0.167<sup>_∗∗∗_</sup>|0.216<sup>_∗∗∗_</sup>|
||(21.245)|(5.437)|(0.061)|(0.030)|(0.021)|(0.015)|
|Withholding Base|10827.196|7293.079|-0.032|0.018|0.017|-0.031<sup>_∗∗∗_</sup>|
||(146.869)|(37.665)|(0.035)|(0.021)|(0.010)|(0.008)|
|Withheld Tax|146.758|78.916|1.419<sup>_∗∗∗_</sup>|1.872<sup>_∗∗∗_</sup>|2.423<sup>_∗∗∗_</sup>|2.667<sup>_∗∗∗_</sup>|
||(5.691)|(1.222)|(0.375)|(0.191)|(0.093)|(0.063)|
|Withheld Tax Reclaims|137.523|67.647|1.464<sup>_∗∗_</sup>|1.533<sup>_∗∗∗_</sup>|2.141<sup>_∗∗∗_</sup>|2.309<sup>_∗∗∗_</sup>|
||(4.965)|(1.055)|(0.543)|(0.172)|(0.109)|(0.075)|
|Net Tax Liability|703.196|458.880|-0.191|-0.068|-0.049<sup>_∗_</sup>|-0.048<sup>_∗∗_</sup>|
||(18.402)|(4.549)|(0.161)|(0.043)|(0.023)|(0.015)|
|Compensation Requests|15.696|5.116|0.763<sup>_∗∗_</sup>|0.476<sup>_∗_</sup>|0.123|0.000|
||(0.508)|(0.108)|(0.281)|(0.208)|(0.163)|(.)|
|Final Tax To Pay|664.067|419.057|-0.222|-0.094<sup>_∗_</sup>|-0.115<sup>_∗∗∗_</sup>|-0.111<sup>_∗∗∗_</sup>|
||(17.415)|(4.084)|(0.182)|(0.047)|(0.024)|(0.015)|
|Taxpayer Sales Tax Payment|646.775|423.248|-0.251|-0.108<sup>_∗_</sup>|-0.098<sup>_∗∗∗_</sup>|-0.100<sup>_∗∗∗_</sup>|
||(17.431)|(4.144)|(0.195)|(0.047)|(0.024)|(0.016)|
|Total Sales Tax Payment|802.957|528.147|0.158|0.254<sup>_∗∗∗_</sup>|0.326<sup>_∗∗∗_</sup>|0.519<sup>_∗∗∗_</sup>|
||(20.679)|(5.215)|(0.083)|(0.034)|(0.022)|(0.018)|
|Tot. Payment - Refund|802.576|527.766|0.160|0.253<sup>_∗∗∗_</sup>|0.327<sup>_∗∗∗_</sup>|0.518<sup>_∗∗∗_</sup>|
||(20.672)|(5.212)|(0.084)|(0.034)|(0.022)|(0.018)|
|Tot. Payment - Refund - IT Comp.|784.958|512.144|0.174<sup>_∗_</sup>|0.257<sup>_∗∗∗_</sup>|0.327<sup>_∗∗∗_</sup>|0.546<sup>_∗∗∗_</sup>|
||(20.600)|(5.179)|(0.079)|(0.034)|(0.023)|(0.019)|
|ST + IT - Refund|1237.233|813.674|0.090|0.145<sup>_∗∗∗_</sup>|0.225<sup>_∗∗∗_</sup>|0.347<sup>_∗∗∗_</sup>|
||(31.134)|(8.589)|(0.060)|(0.026)|(0.016)|(0.013)|
|Observations|1069680|1069680|1069680|1069680|1069680|1069680|
|_R_<sup>2</sup>|0.001|0.008|0.962|0.916|0.899|0.880|

Notes: This table displays pre-reform means in the treatment group (columns 1 and 2) and OLS estimates of the impact of the withholding rate increase on rms in the treatment group (rms with a predicted rate increase at reform time), as per equation 2 (columns 3-6). The rows reect dierent outcome variables, the columns reect dierent specications, as per the row and column titles. For columns 1 and 2, the data is winsorized at the 99.9th and 99th percentile respectively. Columns 3-6 allow for year and rm FE and a rm-specic linear time trend. Point estimates are marginal eects compared to the pre-reform average. Standard errors, clustered at the taxpayer level, are in parantheses. All amounts are in '000 CRC, deated with base in 01/2015 (1USD=530CRC). All outcome variables correspond to boxes on the sales tax return form, except the variables in the last three rows. Compensation requests are used to deduct any net credits or unreclaimed tax withheld from previous tax periods or from other taxes. Taxpayer payment is the payment made by the taxpayer at the end of each month. Total payment is the sum of taxpayer payment and any tax withheld. Total payment - refund subtracts any refund that taxpayers may have claimed on a separate form (refund request form 402). Total tpayment - refund - IT compensation additionally subtracts any compensation requests that the taxpayer requested on her income tax declaration. ST + IT - refund is the sum of total sales tax and total income tax payment (including tax withheld) minus any refund requested.

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