Government collects €10 billion in corporation tax in November

Ellen O'Donoghue

Corporation tax receipts of €10 billion were collected in November.

It is the highest monthly total on record if the one-off Apple windfall is not included, and is €2.7 billion ahead of the figure for the same month last year.

Ireland now looks on track to record corporation tax receipts of around €32 billion for 2025, providing the State with another big surplus.

The Tánaiste and Finance Minister Simon Harris told Newstalk that the figures are encouraging; however, he said that global economic uncertainty remains.

"I must say, as my first set of exchequer returns, there is much to be encouraged by, strong income tax return, strong VAT return, strong corporation tax returns, the economy in a good place to run on a budget surplus," he said.

Mr Harris also said the country must continue to put money aside because of future uncertainty.

"So today’s exchequer figures show strong income tax return, strong vat returns, and the Irish economy in a good position, but it does also show corporation tax at an elevated level, and therefore my message to people is this, our position as an economy is good, but we also need to make sure that we continue to run budget surpluses and that we continue to place money in funds for future times."

The figures showed the Government has collected €29.4 billion in receipts from the business tax so far this year, up €3.8 billion (14.9 per cent) on the same period last year when once-off receipts from the Apple tax case are excluded.

Receipts are also expected to rise again next year as a new minimum 15 per cent tax rate agreed under the auspices of the OECD and applying to large multinationals kicks in.

November is a key month for the exchequer as it is the biggest month for corporation tax and also the last VAT-due month of the year.

The latest returns show the Government’s financial position benefited from strong income tax and VAT receipts in November, reflecting the strength of the labour market and ongoing consumer spending.

On a cumulative basis, overall tax revenues to the end of November amounted to €97 billion, up by €7.3 billion (8.2 per cent) relative to the same period last year.

Income tax has generated €33.7 billion, up €1.5 billion (4.6 per cent) on the corresponding period last year, while the sales tax has generated year-to-date receipts of €22.5 billion, up €1.1 billion (5 per cent).