The first three quarters of the year saw a dramatic increase in corporate taxes, leading to an 11% swell in Exchequer revenue and an expansion of the Government’s surplus prior to the presentation of the €10.5 billion Budget 2025 blueprint on Tuesday. Official data provided by the Department of Finance on Thursday indicates that a striking 23.3% upsurge in corporate tax inflow, amassing to €17.8 billion, propelled the Government’s tax collection to €68.2 billion for the nine-month period.
However, despite these robust performances, the corporate tax yield for September experienced a 13.3% dropdown from the previous month’s significant €1.78 billion, primarily attributed to the contribution of American technology behemoth, Apple. Apple is a rare entity among the nation’s highest tax contributors, choosing to make its biannual payments to Revenue in March and August.
For the same nine months, the Government posted a €5 billion surplus, a substantial increase from last year’s €1.1 billion recorded for the equivalent period. The prior year’s statistics, nonetheless, were affected by a €4 billion allotment to the National Reserve Fund, which has now been reallocated to one of two recently established sovereign wealth funds. These funds are designed to accrue unexpected corporate taxes and channel them towards future state expenditure.
Records from Budget 2025 disclosed this week forecast a record-breaking Government surplus of €23.7 billion by 2024, inclusive of multiple billions of euros in outstanding taxes that the European Court of Justice (ECJ) dictated last month must be remitted by Apple to Revenue. The long-disputed payment, together with accrued interest, has been held in an escrow account, which currently contains around €14.1 billion in assets.
This surplus will match 7.5% of the gross national income-star, a fiscal metric that largely discounts the operations of international conglomerates within the nation. The Department of Finance projects that an additional €15.9 billion in corporate tax revenue this year will be windfall in nature. Excluding these and Apple’s contributions would result in an underlying budget deficit of €6.3 billion – with the finance department anticipating an inherent deficit for every year right through till 2030, the conclusion of its present forecast horizon.
In light of the government’s sturdy financial position, Finance Minister Jack Chambers announced a €10.5 billion measures bundle for the 2025 Budget, right before the forthcoming general election. The Irish Times presented on Thursday disclosing a broad agreement among TDs and Senators, foreseeing a November election, regardless of counterclaims from Taoiseach Simon Harris and Tánaiste Micheál Martin suggesting a possible February poll.
Latest treasury reports demonstrate the government’s primary source of tax revenue, income tax, rose significantly by 7.1% to €24.8 billion in the initial nine months of the year. Concurrently, VAT, being the second largest tax stream, soared 7% to €17.9 billion.
The only tax category that experienced a dip was the capital gains tax, descending 6.4% to €423 million. For the first nine months of 2024, the gross revenues ascended 9.3% annually to €83.1 billion, whilst the total expenditure summed up to €78.1 billion.