Concentration of Large Companies in Regions Explain Tax Collection in Peru

Abstract

The study aims to demonstrate that the number of companies in the regions of Peru correlates positively and significantly with tax collection during the period 2012-2019. It is a basic research, deductive method, relational, not experimental and with a quantitative approach, which analyzed quantitative information of eight years on tax revenues and the number of companies by region, obtained from the portal of the National Superintendence of Tax Administration (SUNAT) and the Ministry of Economy and Finance (MEF). In addition, the cluster discriminant algorithm was used in a total of 2,383,979 companies. Results show that the number of companies in the regions grows between 4% and 8% annually, and tax collection increases between 1.76% and 15.68% annually during the period studied, with an average annual growth of 4.45% throughout Peru. The Pearson correlation coefficient of 0.97 confirms a strong positive relationship between the variables. Three regions account for 91% of total revenue and account for 55% of enterprises. In three clusters, the first, composed of four regions, presents a correlation coefficient of 99.70%, which is confirmed by the discriminant algorithm. In conclusion, the regions with the largest number of (large) companies achieve higher revenues. Three groups are identified, and in the first only two regions are found that significantly affect the collection and the number of companies.