Ireland’s YTD tax revenues rise 6% to €82bn

The Irish Government’s Department of Finance has announced that Ireland’s total tax revenues in the year to end-November amounted to €82 billion — 5.8% ahead of the same period last year.

A total of €15.6 billion was collected in November, 14.7% higher than in the same month last year.

November is by far Ireland’s most important month of the year for tax collection.

It is also the key month for corporation tax receipts, containing returns from a number of large multinational taxpayers.

Corporation tax receipts of €6.3 billion in the month were ahead of November last year by almost 27%.

“This was a sharp reversal in the trajectory of corporation tax after three consecutive months of decline, once again highlighting the exceptional volatility associated with this tax head,” said the Department of Finance.

“The growth in these receipts during November means that total corporation tax revenues amounted to €22.0 billion in the year-to-date, €0.9 billion (4.2 per cent) ahead of last year.

“This is broadly in line with expectations as set out in Budget 2024.”

Income tax receipts amounted to €30.3 billion to end-November, up 7.3% on last year.

VAT receipts to end-November stood at €20.1 billion, up 8.6% on the same period last year.

Total “gross voted expenditure” to end-November amounted to €82.4 billion, 9.9% ahead of the same period last year.

An “exchequer surplus” of €5.4 billion was recorded to end-November, €6.7 billion down on the same period last year.

Ireland’s Minister for Finance Michael McGrath said: “The end-November Exchequer returns confirm that we are, broadly speaking, where we expected to be at this point in the year.

“The growth in income tax and VAT receipts we have seen over the course of the year points to the fundamental resilience of our economy despite all the external challenges we are facing.

“The stand-out feature of the November performance is, of course, corporation tax: after three months of decline, a large increase in receipts this month means this revenue stream is once again comfortably ahead of last year.

“However, it is crucial to place this in context. While corporation tax is now 4 per cent ahead of 2022, it is clear that the era of persistent over-performances is coming to an end.

“The volatility in this revenue stream highlights the importance of ensuring that permanent fiscal commitments are not made on the basis of temporary receipts.

“Instead, the establishment of the two new long-term savings vehicles (the Future Ireland Fund and the Infrastructure, Climate and Nature Fund) will use these windfall corporation tax to help finance known future fiscal challenges, such as an ageing population, climate change and digital transition.”