The Daily Star Ireland
Corporation tax revenues in Ireland rose by 18% last year, reaching €28 billion, according to the latest Exchequer Returns published by the Department of Finance. Including the €11 billion collected so far from the Apple tax case, total corporation tax receipts amounted to €39.1 billion.
However, the Department of Finance cautioned against relying on these “exceptional” revenues generated by a small number of highly profitable multinationals to support long-term spending. It emphasized the need for sustainable financial planning to mitigate potential risks associated with these windfall tax receipts.
The Exchequer Returns for 2024 reflect strong economic performance. Income tax revenues rose by 6.6% to €35 billion, signaling a robust job market. Consumer spending also appeared strong, with VAT receipts increasing by 7.3% to €21.8 billion and excise duties climbing 12% to €6.3 billion.
Overall, Ireland recorded an Exchequer surplus of €12.8 billion in 2024, though this figure drops to €1.8 billion when excluding the €11 billion from the Apple tax case. Total revenues for the year stood at €108 billion, up €20 billion compared to 2023, bolstered significantly by windfall corporate tax collections.
Despite these positive figures, the Department warned of a “high vulnerability” in the tax base, stressing that a reliance on revenues from a few large, highly profitable firms is not sustainable for permanent spending commitments. It noted that the headline surpluses expected in the coming years are heavily dependent on these windfall corporate tax receipts.
To address this, the government has allocated a portion of these windfall taxes into two long-term investment funds. Tom Woods, head of tax at KPMG, underscored the importance of using part of these surpluses to address Ireland’s infrastructure deficits, ensuring the country remains attractive for future business investment and economic growth.
Finance Minister Jack Chambers acknowledged potential risks from global economic changes, including protectionism, tariffs, and deglobalization, particularly in the context of U.S. policies under Donald Trump. He emphasized that these risks were being factored into government planning and highlighted the importance of saving windfall tax revenues to ensure the long-term sustainability of public finances.
Chambers reiterated that a portion of the windfall receipts is being set aside to protect Ireland’s economy and maintain fiscal stability for future generations.
