Ireland recorded a 17.2% surge in corporation tax receipts last year, reaching €32.9 billion, as revealed by Exchequer figures released by the Department of Finance.
This growth was primarily fuelled by higher payments from multinational companies, reports RTE.
Corporation tax collected in December alone increased by €1 billion compared to the same month the previous year, even when excluding Apple’s back tax payments.
The strong performance in corporation tax contributed to total State tax revenue of €105.7 billion for the year, marking an 8.6% increase, reports RTE.
Income tax receipts grew by 4.3% to €36.5 billion, reflecting continued strength in the labour market.
VAT collections rose 5.1% to €22.9 billion, indicating robust consumer spending while excise duties increased 3% to €6.4 billion, reports RTE.
Overall government expenditure amounted to €109.4 billion, representing a 5.5% rise compared to 2024.
When Apple’s payments are excluded, the Exchequer recorded a surplus of €3.8 billion last year, which is €2 billion higher than in 2024, reports RTE.
Apple’s contributions last year totalled €1.7 billion, down significantly from €10.9 billion in 2024.
Minister for Finance Simon Harris noted that corporation tax now accounts for “about a third” of total State receipts.
He said the payments were “heavily reliant” on a small number of multinational funds.
He added: “We are going to build up our fiscal buffers in the years ahead.”, reports RTE.
Addressing criticism from the Irish Fiscal Advisory Council regarding the proportion of corporation tax being ring-fenced under government plans, Minister Harris emphasised that the State is also investing heavily in infrastructure, anticipates larger budgetary surpluses, and is building two long-term savings funds.
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