Taxes collected by the State rose to €36.4 billion in the first five months of the year, representing a 3.6% increase compared to the same period last year, according to the latest Exchequer Returns released by the Department of Finance.
When adjusted to include a portion of the €14 billion in back taxes recovered from tech giant Apple following a long-running EU state aid ruling, the year-to-date tax take jumped by 8.5%.
Income tax collections, often viewed as a bellwether for the broader economy, increased by 4.5%, while VAT receipts were up 5.5%, indicating strong consumer spending and employment levels. However, the figures also reveal a more complex picture when it comes to corporate tax.
Corporation tax surged 18% over the period, boosted by Apple’s payment. Stripping out the Apple funds, however, corporation tax receipts were actually down 9.4% compared to the same period last year.
Minister for Finance Paschal Donohoe acknowledged the drop, attributing it to exceptional, one-off payments in 2024. “It nonetheless highlights the degree of concentration in the corporate tax base, where a small number of multinational firms can significantly impact the overall tax yield,” he said.
Government spending for the same period rose by 8% to €42 billion, broadly in line with targets. This leaves the Exchequer with a headline surplus of €4 billion at the end of May. Excluding the Apple funds, the underlying surplus stands at a more modest €700 million.
Minister Donohoe said the figures suggest steady economic conditions despite some volatility in corporate tax. “May is one of the most important months for tax revenues,” he noted. “The steady growth in most tax headings points to an economy that is in a relatively good position.”
The Exchequer Returns will likely influence the Government’s upcoming budgetary decisions, with policymakers balancing increased spending pressures against the unpredictability of corporate tax revenues, particularly from multinational tech firms.
